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Payment of pension benefits

Payment of pension benefits

A Voluntary Pension Fund’s member shall be entitled to retirement benefits from the Voluntary Fully Funded Pension Insurance at least ten years before his/her age of entitlement to old-age pension in accordance with the Law on Pension and Disability Insurance. The member shall make his/her choice no later than 70 years of age. If the member does not make a choice, the Company shall notify him/her about his/her obligation thereof.

When a Voluntary Pension Fund’s member becomes entitled to retirement benefits, the full amount of funds accumulated on his/her personal account shall be used, including the member’s right to make a personal choice regarding:

  1. The payment of the total amount on his/her account, whether one-off or multiple.
  2. Buying a pension annuity payable for life by the Insurance Company authorized for this purpose.
  3. Programmed withdrawals provided by the Company which the member contracted for programmed withdrawals after retirement.
  4. The combination of all previous options.

In case of death of any member or retired member of a Pension Fund, the funds from the account of such member or retired member shall become part of his/her estate and such funds shall be handled in accordance with the Law on Inheritance.

Payment in case of general work incapacity

If a Voluntary Pension Fund’s member is found to be generally incapacitated to work by the PDIF Commission assessing work capacity, he/she shall be entitled, regardless of his/her age, to choose one of the retirement benefit options in accordance with the Law on Voluntary Fully Funded Pension Insurance.