Voluntary insurance of additional funded pension

Starting October 1, 2022, a new type of pension insurance has been introduced in the Republic of Belarus – voluntary insurance of an additional funded pension. The main difference between the new insurance program and other funded pension programs of insurance organizations is state co-financing (state guarantee for making payments under the insurance contract).
Who can participate in the program
The right to participate in the new insurance is granted to employees (citizens working under labor and (or) civil law contracts, the subject of which is the performance of work, provision of services, and creation of intellectual property objects) for whom their employers pay mandatory contributions to the social protection fund budget.
It is possible to join the new insurance program no later than three years before reaching the generally established retirement age.
Procedure for joining and participating in the new program
Voluntary insurance of an additional funded pension is carried out by the republican unitary insurance enterprise "Stravita" (insurer).

Employees wishing to form an additional funded pension must submit an application and conclude an agreement directly with the insurer or electronically through the insurer's official website. The employer must be notified of the conclusion of the agreement and participation in the new program. Additional contributions to the funded pension in RSP "Stravita" will be transferred monthly by the employer upon the employee's application. The employee chooses the amount of this contribution as a percentage of the actual salary (the maximum additional contribution is 10%), while the employer also participates in the formation of pension savings, but within 3% of the employee's accrued monthly salary (the total maximum contributions will be 13%, the minimum 2% - 1% from each participant). The employee has the right to change the contribution rate for the funded pension, but no more than once a year. It is also possible to suspend participation in the program at any time and then resume making additional contributions.
Upon reaching the generally established retirement age, the insurer will pay the employee an additional funded pension monthly for 5 or 10 years (at the citizen's choice).
The amount of the funded pension will be calculated from the amounts of additional contributions, taking into account the income from their investment (based on the principle of "what you saved is what you get").
What participation in pension insurance gives an employee
• an accessible and understandable mechanism for early saving of funds for old age with state financial support;
• the possibility of inheriting pension savings;
• a guarantee of the safety of pension savings. The implementation of voluntary insurance of an additional funded pension is entrusted to the state insurance organization - RSP "Stravita". The state guarantees insurance payments under insurance contracts concluded by this insurance company;
• the employee's participation in the new program will not affect their state pension (solidarity pension). Its amount will be determined according to the same rules as for employees not participating in voluntary insurance, based on indicators of length of service and earnings prior to applying for the pension.

Beshenkovichi District Department
Vitebsk Regional Department of the Social Protection Fund