Payment of pensions from a voluntary pension fund

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Payment of pensions from a voluntary pension fund

The only condition for realizing the right of using the pension from the voluntary pension fund is to reach 50 years of age without having the right to a retirement pension.

After the expiry of savings in the voluntary pension fund, the member has two options of pension payment:
1.    from the voluntary pension fund, or
2.    from one of the selected pension programmes, offered by the pension insurance company. 
Upon payment, it is possible to ask for a partial one-time payment in the amount of 30% of the saved funds, regardless of the selected manner of payment.

In case the amount of assets on the member’s personal account at the moment of payment is less than HRK 10,000.00, the pension society which manages the voluntary pension fund may pay out the overall funds.

1. Payment of pension from the voluntary pension fund
Payment of pension from the voluntary pension fund will be possible only in case when the value of assets on the Fund member’s personal account is less than HRK 50,000.00. Pensions to be paid from the fund cannot be for life, but they will be paid out during the contracted period of 5 to 15 years. The funds will be paid out in the equivalent value of a certain number of shares contracted in advance, according to the price of shares on the day of payment.

On agreeing the manner of paying pension from the fund, the Law provides for the possibility of a one-time payment from the fund of not more than 30% of the amount on the fund member’s account. A higher amount is possible, but not more than HRK 10,000.00.

2. Payment of pension from pension insurance company
All members with more than HRK 50,000.00 on their account at the moment of payment, shall select the payment of pension from the pension insurance company.

In case the pension is paid from the pension insurance company, the insured transfer their savings from the pension fund, of which they were members, into the pension insurance company.
They sign a contract with the pension insurance company about the payment of pension in one of the few possible ways:
•    life-long retirement pension,
•    early retirement pension,
•    variable pension, and
•    other forms of pension payment offered by the pension insurance company in its portfolio of financial services.  
You can read more about pensions on Raiffeisen Pension Insurance Company webpage, and calculate the expected pension by means of a calculator.


The main difference in the manner of pension payment from the voluntary pension fund in relation to the pension payment from the pension insurance company is given in the following table:

Payment from the voluntary pension fund Payment from the Pension Insurance Company (MOD)
If the value of assets on the personal account is less than HRK 50,000.00, it is possible to agree the payment of pension from the voluntary pension fund If the value of assets on the personal account is more than HRK 50,000.00, pensions shall be contracted through the pension insurance company.
Only temporary pensions may be contracted (5-15 years, monthly payments). Temporary and life-long pensions may be contracted. 
Funds are paid in the equivalent value of previously determined number of shares according to the price of shares on the day of payment (the amount of pension changes depending on the value of clearing unit).) Pension is contracted in Euros (with currency clause), and it is paid in the equivalent value in HRK according to the medium exchange rate of CNB on the day of payment. 
It is always the same amount of pension paid in Euros.  
The guaranteed interest and compensation to the pension insurance society is calculated into the pension. 
A one-time payment of 30% of the total saved funds is possible, or even a greater percentage but not more than HRK 10,000.00.  Upon the one-time payment, it is not possible to pay out more than 30% of the overall funds. 
 
If the value of the assets is lower than kn 10,000, the pension company is able to pay the totally realized funds.