13.2.2019

Note about the untimely allocation of members in the second pension pillar

Dear clients,

With regard to the the announcement of the untimely allocation of 12,000 members in the mandatory fully funded pension insurance (second pillar), Sava Pension Company ad. Skopje hereby announces the following:

In accordance with the legal provisions applicable until December 31, 2018, every person that was employed for the first time after 1 January 2003, with proper allocation has become a mandatory member in the second pension pillar. These persons had a period of 3 months to choose a mandatory pension fund in which they would become members, otherwise they would become permanent members of the mandatory pension fund to be allocated by the Pension and Disability Insurance Fund of Macedonia immediately after their first employment.

The allocation process is legally defined, whereby the obligations of the Pension and Disability Insurance Fund among others include: temporary allocation of the insured persons into a mandatory pension fund, transfer of the contributions of the members of the pension funds to the accounts of the selected pension funds with the custodian, submitting data through the Agency MAPAS to the companies or companies for managing mandatory and voluntary pension funds and keeping complete and up-to-date records of the individual accounts of the members to be used to have an overview of the status of contributions paid for each member in each pension fund etc.

Pension fund management companies are only recipients of data for allocated members and they do not maintain records on new employees for whom allocations are to be made. Pension companies receive information on the allocated members by the Pension and Disability Insurance Fund of the Republic of Macedonia, in accordance with the Law, which clearly defines the manner of allocation thereof.

According to the information presented by the MoLSP, 12,000 insured persons will be allocated for the first time in the mandatory pension funds and belated payment of contributions will be made for them. These persons were previously insured only in the Pension and Disability Insurance Fund of the Republic of Macedonia.

With the recent amendments to the Law on Mandatory Fully Funded Pension Insurance, an obligation has been introduced by which the Pension and Disability Insurance Fund, in case of untimely transfer of funds and untimely allocation of members, shall also pay a fee for untimely allocation in addition to the paid contribution, which means that these 12.000 members shall receive a compensation for untimely allocation in addition to the pension deposit, which shall match the lost return on investment.

Sincerely,
Sava Pension Company ad. Skopje

Supervisor of the fully funded pension insurance is the Agency for Supervision of Fully Funded Pension Insurance (MAPAS) www.mapas.mk tel. 02 3224 229