News

As at 31 October of this year, 591 245 people have joined funded pension plans, of whom 13 715 were added in the last period. The value of pension funds totals MEEK 14 308 – an annual increase of MEEK 3063.

On balance, market shares increased the most last year for AS LHV Varahaldus (up 1.52%) and Nordea Pensions Estonia AS (up 1.07%). In terms of numbers, AS LHV Varahaldus gained the most new clients in the last period. In terms of funds, compared to the previous accession period, market shares have been increased by funds with a progressive strategy, above all by Pensionifond LHV Maailma Aktsiad (7253 new clients) and Nordea Pensionifond A (4558 new clients).

In the most significant change affecting the pension system, the state suspended funded pension contributions until the end of next year. Those wishing to, however, will be able to continue making contributions on their own from next year. For this, an application needs to be filed with a bank, insurer or on the pensionikeskus.ee webpage. The same opportunity is available for those young people who must join a mandatory funded pension plan before the end of November of this year.

From this year, those having joined a funded pension plan will be able to join pension funds with an aggressive strategy that may invest in equity funds, shares and other instruments akin to shares up to 75% of the market value of the funds’ assets. Approximately 0.7% of those having joined, i.e., 4051 young people, have opted for this strategy.

This year, benefit disbursements from funded pension plans commenced, and 6050 people have filed applications to receive a pension. Next year, there will be another 3674 people entitled to draw a pension from the second pillar. Depending on the value of the accumulated pension fund units, a person may be able to withdraw all of their cash from a fund, receive a pension in regular disbursements directly from a pension fund or receive annuity-based disbursements until the end of his or her life through an insurer.

This year was the last opportunity for those born in 1977-1979 to join a mandatory funded pension plan fund.

Detailed information on funded pension plans is available from the pensionikeskus.ee homepage. A register of those joining funded pension plans is being kept by the Estonian Central Register of Securities.

This year, three new funds launched as mandatory funded pension plan providers – Swedbank Pensionifond K4, SEB Energiline Pensionifond and Nordea Pensionifond A Pluss.

From 1 January 2010, the designations of the following funded pension plans will change:

Pensionifond LHV Uued Turud – new designation – LHV Pensionifond XL
Pensionifond LHV Maailma Aktsiad – new designation – LHV Pensionifond L
Pensionifond LHV Tasakaalustatud Strateegia – new designation – LHV Pensionifond M
Pensionifond LHV Dünaamilised Võlakirjad – new designation – LHV Pensionifond S
Pensionifond LHV Kvaliteetsed Võlakirjad – new designation – LHV Pensionifond XS

http://www.nasdaqomxbaltic.com/files/tallinn/bors/press/pension/pension_2009_eng.pdf