Thousands of the population will be included in pension funds – you will have half a year to decide

In early 2021, those who have worked or started self-employment for the first time this year will receive a notification about the participation in the accumulation of pensions of the second pillar, reports Sodra.

Proposals to participate in the accumulation of pensions of the second pillar will be received by those residents who have not been included in the accumulation before and who have a work contract or are self-employed and under 40 years of age on January 2 of this year.

The pension fund accumulation company will be selected for them at random.

Residents will be notified of the inclusion in the accumulation of second pillar pensions through the personal accounts of Sodra residents and by email, if the resident has indicated this to Sodra. Residents will also be informed later by certified letters.

“Although residents are involved in pension accumulation, it is their free choice to participate or not in second pillar pension accumulation. Residents can enter into a pension accumulation agreement at any time and in the pension accumulation company of your choice, ”the Sodra report reads.

Those residents who are included early next year, but do not want to participate in the pension accumulation, will have time to notify Sodra before the beginning of July that they refuse to participate in the pension accumulation.

3 percent of salary on paper

For residents included in the accumulation of second pillar pensions, a transitional rate of 2.4% is applied. the pension accrual rate, which will increase each year and in 2023. will reach 3 percent. You can also choose and start paying 3% right away. contributions from your salary.

The state also encourages accumulators. At the transition rate, 0.9% is transferred to your pension funds at a transition rate. of the average salary (VMU), and accumulating the full 3%. fee – 1.5 percent. by VMU. Next year it will be almost € 12 and almost € 20 per month respectively.

The state transferred 125 million. euro incentives

This year, Sodra transferred a total of LTL 417 million to the accounts of the population in pension accumulation funds. euros. Of these, 125 million. State incentives.

Currently, 1.37 million people participate in the accumulation of second pillar pensions. population of the country. Last year, 43.5 thousand were included in the accumulation of pensions. population, 27 thousand. of them chose to participate in the accumulation. Another 11 thousand. the population independently signed pension accumulation agreements during the year.

Conducting an opinion poll – the evaluations are positive

Residents welcome the decision to transfer the pension annuity payment to Sodra, which took effect this year. This is an acceptable 55 percent. population and less than a fifth (19%) are unfavorable to the reform. About one in six residents does not have this innovation. This was revealed by a representative public opinion poll conducted by Spinter’s research on behalf of Sodra.

Beneficiaries of pension annuities have already received more than 40 thousand. pension annuity benefits in euros. After taking over the payment of Sodra’s pension annuities in July, about 200 residents who participated in the second-pillar pension accumulation and reached retirement age or retired early in half a year. They transferred a total of more than 3 million LTL to Sodra’s pension annuity fund. euros.