By resolution dated June 19, 2026, COVIP (the Pension Fund Supervisory Commission) provided operational guidelines regarding the new regulations on the use of severance pay (TFR) for supplemental pension plans introduced by the 2026 Budget Law. The guidelines focus on private sector employees in their first job and existing private sector employees who, after June 30, 2026, enter into a new employment relationship. Pursuant to the provisions of Article 1, paragraph 205, of Law No. 199/2025, the above changes apply effective July 1, 2026, and therefore concern employees hired on or after that date. These changes do not apply to individuals who are already employed and who are not hired as employees after June 30, 2026. Employees in these circumstances are not subject to any specific information requirements from employers regarding the new provisions.
New hires as of July 1, 2026
For these employees COVIP specifically establishes the employer’s obligation to:
- provide new hires with specific information regarding the new automatic enrolment system, including the designated pension plan and the timeframe within which an employee may opt out;
- identify the applicable supplementary pension plan based on the criteria set forth in the 2026 Budget Law (if no plan is identified, automatic enrolment will take effect with the Cometa Fund – as detailed below);
- notify the supplementary pension fund of enrolment and start making contribution payments from the month following the expiration of the 60-day period. In general, automatic enrolment entails not only the transfer of severance pay (TFR) to the supplemental pension fund but also the payment of contributions by both the employer and the employee.
Contributions to the designated fund must be made starting the month following the expiration of the 60-day period, including amounts due from the date of initial employment.
Some collective agreements or contracts may stipulate that no contributions to the supplemental pension plan are made during the probationary period; in such cases, the employer should pay the severance pay (TFR) into the designated fund starting from the date of hire, paying the corresponding contributions upon successful conclusion of the probationary period.
If there are multiple applicable pension plans (category-based pension funds, regional funds, company-level collective pension plans), then:
- enrolment is automatic into the plan identified by a company agreement; or, in the absence of such agreements,
- into the plan in which the largest number of the company’s employees 4 are enrolled. To determine this number, the date of hire must be used as the reference point.
In the absence of agreements or contracts, the supplementary pension plan designated for automatic enrolment is the residual plan identified by the regulations set forth in Decree No. 85 of March 31, 2020, issued by the Minister of Labor and Social Policies. That is, the COMETA Fund (National Supplementary Pension Fund for workers in the metalworking, plant installation, and related sectors). In this case, automatic enrolment results in the entire severance pay (TFR) being allocated to this fund, with no employee or employer contributions required.
Alternatively, the employee may also express his or her waiver by:
- Indicating the intention to keep the severance pay with the company (Art. 2120 of the Civil Code);
- By specifying a different supplementary plan to which the employee is already enrolled or to which he or she expresses a desire to become enrolled;
- By only partially allocating the severance pay (if provided for by collective bargaining agreements).
The waiver is effective ex tunc; therefore, it takes effect retroactively as of the date of enrolment, thereby terminating the effects of automatic enrolment.
Given that the law provides for a 60-day period to exercise this right, automatic enrolment is not considered effective for:
- individuals hired under fixed-term contracts of less than 60 days, as they would not be guaranteed a sufficient reflection period, which is essential for making informed decisions.
- individuals whose employment ended before the expiration of the 60-day period.
The commission also clarifies that any suspensions of the employee’s working activity do not result in a suspension of the calculation of the aforementioned 60 days.
With regard to employees hired after June 30, 2026, but who are not “first-time hires”, COVIP provides specific clarifications:
- As for new hires, employers must also provide the aforementioned disclosure form in this case, through which they must obtain information on the workers’ previous choices (management of severance pay pursuant to Article 2120 of the Civil Code or enrolment in a pension fund);
- Automatic enrolment applies exclusively to employees who are not first-time hires and who, at the time of their new hire, are already enrolled in a supplemental pension plan. It is further specified that automatic enrolment does not apply if the employee, who is already enrolled in a pension fund, has fully redeemed their individual account (this rule does not apply in the case of partial redemption of the individual account).
- In the case of automatic enrolment, the aforementioned severance pay (TFR) is paid in full, unless the employee, within 60 days, decides to allocate a percentage of the accruing severance pay in accordance with the provisions of the agreements; or, for employees who first enrolled in the mandatory pension system prior to April 29, 1993, and for whom the agreements do not provide for the allocation of severance pay to a supplemental pension plan, in an amount of not less than 50 percent.
In all other cases, the employer manages the employees’ severance pay in accordance with Article 2120 of the Civil Code, without prejudice to the employee’s right to change their mind and allocate subsequent instalments to a selected pension fund.