Payment of Romanian pensions abroad to be guaranteed by NHPSI and managed by Citi Romania
29,000 beneficiaries living abroad will receive their pension in their country of residence
Bucharest, August 25th, 2008 - For the first time, Romanian public pension beneficiaries living abroad will receive their pension in their country of residence. They will receive it in the bank account declared at the local pensions house where their file is based. The program begins in August of 2008.
The National House of Pensions and Other Social Insurance Rights (NHPSI) has signed a partnership with Citibank Romania SA, where pensions and other social security rights are to be transferred abroad to local bank accounts held by Romanian citizens. The first payments abroad were transferred in July this year, as part of an initial test.
Romania's entry into the European Union dispense with the terms of residence (habitual residence) for the beneficiaries established in the Member States of the European Union (EU), as well as the European Economic Area (EEA). According to legislation in force, people entitled to retirement and death benefits, acquired under Romanian law, will receive these benefits even if their place of habitual residence is established in another member of the EU / EEA than Romania.
This program was implemented to ensure equal treatment for all beneficiaries of the public pension system including those living in an EU / EEA member state who are unable to appoint a recipient living in Romania
"We were fully aware of the need to ensure the necessary conditions to comply with the commitments we made as a result of Romania's EU accession, in particular regarding the insurance of equal treatment for all beneficiaries of the public pension system, regardless of the state in which they wanted to establish themselves. We appreciated the availability of Citi Romania representatives in the steps they made to initiate this project, an essential attribute in any project implementation of such scale," said Mrs. Stefana Aghergheloaei, general secretary of NHPSI.
To ensure the export of pension rights in the territory of other states, NHPSI invited financial institutions to submit bids for the conclusion of an agreement that ensures the exclusive payment of pension rights abroad. Citibank Romania S.A. has been chosen as partner of NHPSI following a public auction, which took place at the end of 2007.
"We are happy to assist with this initiative designed to give Romanians abroad access to their pension payments. Citi Romania is honored to be chosen by NHPSI as a partner in this project and will ensure we provide first class service using our global franchise. CitiDirect Online Banking, Citi' s renowned transaction platform, assures that all 42 local pension houses will have the necessary infrastructure for transmitting pension payments. We believe that our long experience in the pensions market will enhance our ability to deliver the best service", said Cristela Georgescu, Global Transation Services Head, Romania.
The process will take place as follows: in the second half of each month, local pension homes will make pension transfers in foreign currency through Citi Romania. In the two days following the initiation of payments, beneficiaries will be able to receive their pension benefits, minus the transfer of all costs that may arise from their local recipient banks in the country of domicile or residence, as appropriate.
About Citi
Citi has been present in Romania through Citibank Romania S.A. since 1996 and provides high-quality financial products and services to national and international companies, small and middle enterprises, the public sector, non-profit organizations and individuals. At present Citibank Romania holds 8 branches addressing mainly legal entities and 39 CitiFinancial agencies, providing loans for individuals. CitiFinancial also serves its clients through the 668 direct sales offices from 50 centers located around the country.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.
About NHPSI
National House of Pensions and Other Rights Social Insurance (NHPSI), is an autonomous public institution of national interest, legal personality, specialized organ of the central government, which administers and manages public pension system and other social security rights, and the system of insurance against accidents at work and occupational diseases under the authority of the Ministry of Labour, Social Solidarity and Family. NHPSI has subordine houses county retirement pensions and House of Bucharest Municipality, which are decentralized public service investite legally.
As a liaison body with regard to pensions in the application of legal instruments of international nature, NHPSI takes the necessary measures to implement uniform and fair, by territorial retirement homes, the Community regulations in the field of social security, and the agreements and conventions in the field of insurance / social security to which Romania is a party. More information can be found at www.cnpas.org, under European Integration.