The Financial Supervisory Authority hopes to register pension funds before the end of May 2002
The Financial Supervisory Authority wishes to register the funded pension funds of the second pillar before 31 May this year, after which date the people wishing to subscribe to the funded pension will be able to start filing applications.
Andres Trink, Chairman of Board of the Financial Supervisory Authority told ETA that the Authority has 60 days or two months after submission of a registration application to register the rules of a pension fund. “In any case, registration of funds will take less than two months,” Trink promised.
According to Trink, the Financial Supervisory Authority expects to register as many funds as possible at a time, so that the clients of the funded pension would be able to start choosing among the funds.
Before registration of funds, the management companies, i.e. the banks and insurance companies, etc shall be registered. By the time being, the Financial Supervisory Authority has registered three management companies of pension funds out of six applicants: Seesami Varahaldus, LHV and Sampo.
According to Trink, only one of them has submitted an application for registration of the pension fund rules, but more applications are expected in the next few days.
As according to law, the persons born from 1942 – 1951 can subscribe to the funded pension only up until 31 May, the Ministry of Finance is preparing a draft of a law, whereby the respective deadline would be postponed to 1 November this year.
According to plans, contributions will be made to pension funds from 1 July. The state shall contribute four percent out of the social tax and the person himself or herself shall contribute two percent to the pension funds of the second pillar. According to the Ministry of Finance, the amount to be deducted from the future state pension of the clients of the second pillar will be about by about on-half less than four percent.