The old age pensions are presented by 3 pillars. Pillar 1 – Mandatory Pension Insurance (PAYG+Funded Part), Pillar II -Occupational plans, Pillar III- Individual plans. Non-governmental pension funds (NPF) provide coverage for funded part of Pillar I and coverage for pillars II and III.
In PAYG part the pension rights are formed for every year of work as pension points on the condition that employer pays mandatory pension insurance contributions.
NPFs licensed to carry out MPI manage pension savings (funded part) formed from the MPI payments employers make for their staff.
The transfer of employers’ contributions to the funded component of pension has been suspended since 2014, and currently NPFs manage funds accumulated in previous years. All funds providing MPI services are participants in the system for guaranteeing the rights of insured persons. Monies placed with such funds are insured by the Deposit Insurance Agency.
As part of the Pillars II and III, NPFs manage pension reserves formed from the voluntary contributions of legal entities and individuals.
47 non-governmental pension funds, 37.3 million people participate in the MPI, 6.1 million people participate in the NPC (Pillars II and III).