Supplementary mandatory retirement provision in a universal pension fund

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What does SMRP insure?
IF YOU ARE BORN AFTER 31.12.1959, you are also compulsorily insured at a Universal retirement fund – supplementary mandatory retirement provision.

What does it guarantee?
THE SUPPLEMENTARY MANDATORY RETIREMENT PROVISION guarantees an increase of retirement income. It is implemented based on an agreement between the insured party and a licensed retirement insurance company. The contributions for supplementary mandatory retirement provision are accumulated in an individual batch for each insured party. Using the new insurance model, the liability for the retirement income amount for people working right now is divided between the government, the employers and the insured parties. The Universal retirement fund accumulates funds which are used to pay additional lifelong pension, independent from the pensions provided by the governmental social security.INSURANCE IN A UNIVERSAL RETIREMENT FUND PROVIDES YOU WITH THE RIGHT FOR:Additional lifelong pension for old age after acquiring the eligibility to receive pension for the period of insurance;A one-time payment of up to 50 percent of the funds accumulated in an individual batch in case of lifelong loss of work capacity over 70.99%;A one-time payment or such in installments of amounts to the heirs of a deceased insured party or a retired person.

What determines the insurance amount?
THE INSURANCE CONTRIBUTIONS TO A UNIVERSAL RETIREMENT FUND (URF) are a part of the total mandatory pension contribution. The amount of insurance contributions to URF is 5% of the insurable income. The contribution’s distribution between the insured parties and the insurers is as follows: at the expense of the insured party 2.2 percent; at the expense of the insurer 2.8 percent. The contribution deposit is performed together with the insurance contributions for governmental social security. The contributions are collected by the NRA which distributes them into a URF where the insured party is registered. The choice of a universal retirement fund is personal. Each insured party has the right to file an application to participate in one retirement fund only. The contributions into these funds are partially or fully paid by your employer/insurer, however the funds deposited into your personal accounts are your property.

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