2nd Level Pension Funds
Pillar II is the accumulation of a pension in funds, which allows to accumulate a pension up to 20-30% of the former earnings. All persons covered by the state social pension insurance to receive the main and additional part of the pension can accumulate. Money transferred to these funds is invested.
How to accumulate in the Pillar II?
The state also contributes to your Pillar II pension. Contributions to Pillar II are paid monthly from two sources: YOUR CONTRIBUTION - 3% of the salary "on paper" and STATE INCENTIVE - 1.5% of the national average salary last year.
If you have previously accumulated at minimum or are only now have joined the accumulation in Pillar II pension funds, your and the state's contributions will be lower and increase gradually, reaching the maximum amount (3 + 1.5%) in 2023. More information on Pillar II contributions is available here.
By the way, if you have ever suspended contributions to the Pillar II fund, your accumulated funds are continued to be invested, and you can renew your contributions at any time.
Pension pay-outs
Upon retirement from 1 July 2020, the participants of the Pillar II pension will receive it from two sources: the accumulated funds of the Pillar II pension fund and Sodra. How the pension will be paid depends on how much money you have accumulated in the Pillar II pension fund.
Pension funds can be paid out in the following ways:
- In a lump sum
- In periodic pay-outs
- By way of annuity
It is important to know that as long as the funds are in the pension fund (accumulating or receiving periodic pay-outs), they are inherited. While receiving annuity pay-outs, most of the funds accumulated in the Pillar II can be inherited, depending on the type of annuity you choose.
More information on Pension pay-outs.
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.
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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.
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Please note that you must carefully read the rules of the selected pension fund, assess the risks associated with the investment and familiarize yourself with the applicable taxes.
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.
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.
More information about pension accumulation can be found at www.sodra.lt; www.lb.lt.
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.