Voluntary insurance of an additional funded pension is a new direction in the development of the pension system

In order to develop a multi-level pension system in the Republic of Belarus and increase the incomes of the population of retirement age, on September 27, 2021, the Head of State signed Decree No. 367 "On Voluntary Insurance of Additional Funded Pension" (enters into force on October 1, 2022).

 The main principle of additional funded pension insurance is the voluntary participation of working citizens and their employers in a new funded pension program, which will allow the formation of additional pension savings upon reaching the generally established retirement age by the employee and, accordingly, increase the future labor pension. 

 The formation of additional pension savings will be carried out through transfers to the republican unitary insurance enterprise "Stravita" of additional insurance contributions and income from their investment.

  The insurance contribution rate for working citizens is set at 1 to 10 percent (at their choice), and for employers, depending on the employee's choice, from 1 to 3 percent. 

 Thus, if an employee chooses a 1% monthly contribution to the funded pension system, the employer will also be obliged to pay 1% of the employee's accrued salary to RUP "Stravita" monthly; 2% - employee, 2% - employer; 3% - employee, 3% - employer; 4% - employee, 3% - employer, and so on, up to 10% of employee contributions and 3% of employer contributions (the maximum contribution amount is 13%, the minimum is 2%). At the same time, in order to prevent an increase in employer expenses related to the need to pay additional insurance contributions to RUP "Stravita", the Decree provides for a reduction in the mandatory pension insurance contribution, established by the Law on contributions to the budget of the state non-budgetary fund for social protection of the population of the Republic of Belarus (28%), by the amount of the insurance contribution allocated for additional funded pension insurance (from 1% to 3%).

 Thus, the state acts as a guarantor of the fulfillment of obligations for pension provision of labor pensions and their increase, and in case of the employee choosing a program of additional funded pension insurance, it will undertake obligations to preserve the income of the social protection fund budget to ensure the payment of labor pensions within the framework of the solidarity pension system.

 Other benefits and financial incentives are also provided for participants of the new pension program, such as: income tax relief (employee's entitlement to a social tax deduction for the amount of insurance contributions paid from the employee's funds), the possibility of inheriting pension savings, a guarantee of their safety, exemption from paying insurance contributions to the fund's budget, and exemption from insurance contributions for mandatory insurance against industrial accidents and occupational diseases on the amount of contributions made for an additional funded pension.

 To exercise the right to participate in the voluntary insurance system for an additional funded pension, an employee must contact the insurance company RUP "Stravita" and, after concluding an agreement on additional funded pension insurance with it, inform the employer of their choice.

Head of the Department of Professional

Pension Insurance of the Vitebsk

Regional Department of the Social

Protection Fund of the Population