FSZN reminds about voluntary insurance of an additional funded pension

By Decree of the President of the Republic of Belarus No. 367 of September 27, 2021 "On Voluntary Insurance of Additional Funded Pension" the right to participate in voluntary insurance of an additional funded pension has been granted.

This right is granted to employees for whom their employers pay mandatory contributions to the social protection fund budget.

Participation in the new insurance can be started no later than 3 years before reaching the generally established retirement age.

The employer or the employee themselves concludes an agreement with the insurance organization.

Participation in the program can be suspended at any time and then resumed by paying additional contributions.

An employee wishing to participate in the insurance will be able to pay an additional contribution to the funded pension from October 1, 2022. The amount of this contribution, as a percentage of the actual salary, is chosen by the employee themselves. The maximum (limit) amount of the employee's additional contribution is 10%. The rate can be changed, but no more than once a year.

If the employee decides to participate, their employer will also join. The employer will be obliged to pay a contribution in the amount of the employee's contribution, but not more than 3%.

The employee's participation in the new program will not affect their occupational (solidarity) pension. Its amount will be determined according to the same rules as for employees not participating in voluntary insurance – based on indicators of service record and earnings prior to claiming the pension.

When an employee joins the new program, their employer's expenses for paying pension contributions will not increase. Their mandatory 28 percent contribution to the social protection fund budget will be reduced proportionally.

The new program participants are provided with:

– income tax benefit. For example, employees are granted the right to receive a social tax deduction for the amount of insurance contributions paid by the employee for future funded pensions;

– possibility of inheriting pension savings;

– guarantee of the safety of pension savings. The implementation of voluntary insurance of additional funded pensions is entrusted by the Decree to the state insurance organization – the republican unitary insurance enterprise "Stravita".

The state guarantees insurance payments under insurance contracts concluded by this insurance enterprise.

Care for one's future pension should become a habit for everyone. Only in this case, in old age, one can have a comfortable level of income, allowing for a lifestyle that meets personal expectations.