OREANDA-NEWS. From 15 May until 15 September 2013, applications can be submitted to increase the amount of contributions to the mandatory funded pension or II pillar for the years 2014-2017.

According to the Social Tax Act, the state froze its contributions to pension funds from June 2009 until the end of 2010;

decreased payments in 2011;

in 2014-2017, it will increase contributions for people who have submitted an application to continue II pillar pension contributions in 2009 or for people who, during the period of 15 May until 15 September 2013, submit an application for temporary contribution increase

People who have joined the funded pension can be divided into three groups based on the possibilities for using the increased contribution rate.

Persons who were born in 1955 or later and who in 2009 did not submit an application for continuing the payments:

? such a person can submit an application for 1% bigger (3% of gross salary instead of 2%) contribution to the II pillar pension. In this case, the state adds to his or her II pillar 6% instead of 4%;

? if an application is not submitted, the II pillar contribution stays the same: 2% of gross salary + 4% from the state.

Persons who were born in 1955 or later and who in 2009 submitted an application for continuing the payments:

? such a person can submit an application for 1% bigger (3% of gross salary instead of 2%) contribution to the II pillar pension. The state adds to his or her II pillar 6% regardless of whether or not the person has submitted an application for the temporary increase of contributions;

? if an application is not submitted, the II pillar contributions are the following: 2% of gross salary + 6% from the state.

 Persons who were born between 1942-1954 and who in 2009 did not submit an application for continuing the payments:

? such a person can submit an application for 1% bigger (3% of gross salary instead of 2%) contribution to the II pillar pension. In this case, the state adds to his or her II pillar 6% instead of 4%;

? if an application is not submitted, the II pillar contribution stays the same: 2% of gross salary + 4% from the state.

Persons born between 1942-1954 who submitted an application for continuing the payments have since 2010 received contributions to the II pillar pension according to the “2% of gross salary + 4% from the state” scheme. The state has not frozen its II pillar contributions or decreased them in 2011 for these people. Therefore, they cannot submit an application for an increased rate this year.

Applications can be submitted from 15 May, either in a branch or via the Internet bank.
Submitting the application is free and it is done in the same way as for II pillar pension applications, i.e. from 15 May 2013, the applications can be submitted to the II pillar pensions account manager or directly to the Estonian Central Register of Securities. Submitting the application through our Internet bank is the most convenient way.

Should you have any questions, call 665 5100 or contact us by e-mailing klienditugi@seb.eeor sign up for a free consultation at www.seb.ee/kutseeng .