Sogecap, a life insurance subsidiary of Societe Generale group, has obtained approval from Romanian authorities to set up a pension fund company called Pillar II. Founded in partnership with Banque Roumaine de Developpement, Societe Generale's subsidiary in Bucharest and the largest banking network in Romania, the new company will be based in Bucharest.
Under the 51:49 partnership, Banque Roumaine de Developpement’s (BRD) two million customers will be able to apply to one of the bank’s 700 branches and subscribe to the mandatory private pension fund, BRD Fond de Pensil, following new Romanian regulations.
During the four-month pre-reservation period, which began on September 17, 2007, individuals younger than 35 and in employment will be able to choose the private pension fund into which a large part of their social security contributions will gradually be reallocated. Individuals aged 35-40 and in employment will also be able to subscribe the fund on a voluntary basis.
This operation further strengthens Societe Generale group’s positions on the Romanian market where it is present through BRD retail banking, BRD finance and ALD automotive.