Voluntary pension funds operate on the principle of individual accounts and capital savings. Pension contributions to the fund can be paid:
- employer for employees
- individuals to themselves or others (eg. spouse, child or anyone else)
- union or citizens' association for members
- together both employer/union/association and individual
No matter who makes payments to the fund, the member is always an individual and he is the sole owner of the paid funds.
The deposited funds are recorded on the member's individual account and become assets of the fund. By entering unique username and password into designated fields in the section of this internet presentation marked as “MEMBERS ONLY” , a member had direct online access to his/her individual account.
Fund's assets are invested in legaly prescribed instruments and change by realized investement yield. Thus the amount of accumulated assets on the individual accounts of each member changes as well.
When the conditions are met, accumulated amount on the member's individual account are paid out according to the member's choice, as a:
- lump sum up to 30% of accumulated assets, and the rest according to the chosen period
- programmed payout on chosed period not shorter than a year
- lifetime annuity (lifetime pension)
- combination of these ways
Scheme: From the contribution payment to private pension payout