2nd level pension funds
Accumulation in private 2nd pillar pension funds. All persons who are covered with the state social pension insurance for the basic and additional part of the pension can accumulate. The funds transferred to these funds are invested.
Amount of the contributions transferred to the pension fund
The amount of contributions in the legislation governing pension accumulation activities is determined by the state. All participants in the 2nd pillar pension savings are subject to the same level of contributions.
In 2019, after the entry into force of the pension reform, it is accumulated according to the formula “3+1.5%” (3%, the participant's contribution from monthly wages plus 1.5%, the state contribution from the average wage of the country of the previous year).
The persons, who became participants in the accumulation before 31 December 2018 and accumulated the minimum, in 2019 will accumulate according to the formula “1.8+0.3%” (1.8%, the participant's contribution from the wage plus 0.3%, the state contribution from the average wage of the country of the previous year) and gradually by 0.3 percent annually will increase their contributions until their accumulation formula reaches “3+1.5%”:
2nd pillar funds accumulate old-age pensions, so you can only get pension from your pension fund when you reach the age of retirement.
After having accumulated a certain amount, for the funds accumulated in the pension fund, it will be obligatory to acquire the periodic pension benefit to be paid for life, the pension annuity. Currently, the pension annuity is compulsory when the amount of the annuity of the basic pension calculated for the pension fund participant is no less than half of the amount of the state social insurance basic pension.
From 2020, the annuity will be required to acquire after having accumulated 10 thousand euros, and the annuity payer will be the State Social Insurance Fund Board under the Ministry of Social Security and Labour. You can find out more about the pension annuity here.
Whether the yet unpaid amount you have after death can be inherited, will depend on what kind of annuity you choose: with or without inheritance. You can find out more about the pension annuity on the website of the Bank of Lithuania.
The funds accumulated in the Fund may be received earlier by those persons who are granted an early retirement pension in accordance with the Law on State Social Insurance Early Old-Age Pension Payment of the Republic of Lithuania.
Distributed 2nd level pension funds
The pension funds distributed by Šiaulių Bankas are managed by the asset management company INVL Asset Management, belonging to one of the leading asset management groups in the Baltic States, Invalda INVL. The companies in this group also manage investment funds, alternative investments, individual portfolios, private equity and other financial instruments.
2nd pillar pension funds operate on a life-cycle basis: the pension is accumulated in 7 funds, which are broken down by the year of birth of the participants and gradually changes the riskiness themselves, so that the participants do not have to worry about anything.
2nd pillar pension funds
Life cycle funds are the target group funds whose investment portfolio is formed and managed by combining the risky and less risky asset classes, taking into account the duration of the fund's participants’ participation in pension accumulation.
How do I become a member of a pension accumulation system or change my pension fund?
Becoming a member of the pension accumulation system is simple: just sign a pension accumulation agreement with a pension accumulation company. If you have already signed the 2nd pillar pension accumulation agreement, you can change the management company by choosing one of the pension funds managed by INVL Asset Management.
It is most convenient to fill in the inquiry form and our Bank representative will contact you or you can come to the nearest Customer Service Unit of the Bank and enter into a pension accumulation agreement.
For more information, please call 1813 (+370 37 301 337 from abroad).
Funds of the pension funds are invested in accordance with the investment strategy of the pension fund rules.
By participating in pension funds, you will have to pay the fees specified in the rules of the selected pension fund. 2nd pillar pension funds are subject to pension contribution and asset management fees. Also, pension fund assets may be used to cover currency exchange costs.
The 2nd pillar pension accumulation agreement may not be terminated except for the 2nd pillar pension accumulation agreement entered into for the first time, which the Participant is entitled to unilaterally terminate within 30 calendar days of the conclusion of such a contract by notifying the pension accumulation company in writing.
Persons who became participants before 31 December 2018, from 1 January 2019 till 30 June 2019 will have the right to terminate participation in pension accumulation or to stop the transfer of pension contributions to the pension fund.
The pension fund participant bears the investment risk when accumulating in pension funds: the pension accumulation company does not guarantee the profitability of investments. Past performance of a pension fund does not guarantee future results and is not a reliable indicator of future results. As the value of a pension fund can rise or fall, you can recover less than you invested. More information about the risks associated with investing in pension funds can be found here.
It is suggested to consider investing in a conservative investment pension fund seven years and less before retirement in the case of accumulation in a non-life-cycle pension fund.
We recommend you to responsibly and carefully choose the pension fund, to pay attention to investment-related risks involved, deductions applied as well as to carefully read the rules of the pension fund, which are integral part of the pension contract.
All the information provided is of a promotional nature, which cannot be interpreted as a recommendation, offer or invitation to raise funds in pension funds managed by INVL Asset Management UAB. The information provided may not be the basis for any subsequent transaction. Šiaulių Bankas AB is not responsible for your decisions based on the information provided here.