The Agency for Supervision
of Fully Funded Pension Insurance

Mandatory fully funded pension insurance – second pillar

1. A member of a mandatory pension fund is an insured person who joins compulsory pension and disability insurance for the first time after January 1, 2019 and on the accession, date is under 40 years old.

2. A member of a mandatory pension fund is an insured person who firstly joined the mandatory pension and disability insurance (got employed) after January 1, 2003 and was born after January 1, 1967.

3. A member of a mandatory pension fund is an insured person who first joined the mandatory pension and disability insurance (got employed) before January 1, 2003, who by their choice accessed a mandatory fully funded pension insurance by signing a Membership agreement and was born after January 1, 1967.

4. A member of a mandatory pension fund is an insured person who joined the mandatory pension and disability insurance for the first time (got employed) before January 1, 2003, who by their choice accessed a mandatory fully funded pension insurance by signing a Membership agreement and was born before January 1, 1967 and who until September 30, 2019 signed an extension Membership statement in the mandatory fully funded pension insurance.

An insured person can acquire a membership in a mandatory pension fund in two ways:

1) By signing a Membership agreement in a mandatory pension fund and by registration in the Members Register maintained by the Agency

2) By distribution in a Mandatory pension fund at randomly by the PADIFNM Fund in case when the insured person who is obliged to become a member of a mandatory pension fund did not sign a Membership agreement in the period of a mandatory pension fund election and by registration in the Members Register maintained  by the Agency.

Each employee is entitled to personal choice (within three months from the first employment) which pension company is going to conclude a Membership agreement in a mandatory pension fund with.

There are currently three pension companies that manage one mandatory pension fund each:

Sava pension company a.d. Skopje
Mother Teresa st. No. 1 Skopje,
tel. 02-15-500, www.sava-penzisko.mk
KB Prvo penzisko drustvo AD Skopje
Metropolitan Theodosij Gologanov st. no. 6 Skopje
tel. 02-3243-777, www.kbprvo.mk
TRIGLAV PENSION COMPANY AD Skopje
September 8 Bul, no. 16 Skopje,
tel. 02-5102-190, www.triglavpenzisko.mk

For more information regarding their operation and easier election among pension companies you can:

  • Visit their websites;
  • Review their financial operation report, investment strategies and realized income, as well as the fees they charge;
  • To find out what services they offer to their members and what reputation the companies have;
  • To visit the MAPAS website: www.mapas.mk

Talk to the pension companies’ agents before making a decision which mandatory pension fund you are going to join and in the same time ask for the ID of the agent you are talking to.

To contact an agent, you need to contact the pension companies or their business associates.

Sign a Membership agreement with the elected mandatory pension fund and carefully fill in the details in the agreement. The agreement contact details are going to be used to submit regular reports on your savings to your contact address.

Pension companies have an obligation to take care of their members by continuously investing their funds and regularly notifying members about their account status and the pension fund portfolio.

Pension companies have a fiduciary duty to work only for the benefit of the members’ interests, which should be implemented by applying high standards of ethics and integrity and without conflict of interest.

When you sign a membership contract for the first time in a mandatory pension fund, you are entitled to terminate the contract within eight working days from the date of signing with a written submission sent to you by the agent or the pension company.

You can submit the signed submission for Membership agreement termination in person to the pension company, through another person or by mail with a registered shipment.

Transfer from one to another mandatory pension fund

In case you are not satisfied with the services of the company that manages the mandatory pension fund in which you are a member, you can transfer to another mandatory pension fund managed by another pension company.

To transfer from the mandatory pension fund where you are a member (existing mandatory pension fund) to another mandatory pension fund managed by another company (future mandatory pension fund), you need to sign a Transfer agreement with the company that manages the future mandatory pension fund and provide a statement of consent regarding the transfer. At the same time, if you are a member for less than two years, you need to pay a fee of 15 euros, and if you are a member for more than two years, the transfer is free.

In case you are not satisfied with the services of the company that manages the mandatory pension fund in which you are a member, you can transfer to another mandatory pension fund managed by another pension company.

To transfer from the mandatory pension fund where you are a member (existing mandatory pension fund) to another mandatory pension fund managed by another company (future mandatory pension fund), you need to sign a Transfer agreement with the company that manages the future mandatory pension fund and provide a statement of consent regarding the transfer. At the same time, if you are a member for less than two years, you need to pay a fee of 15 euros, and if you are a member for more than two years, the transfer is free.

When a mandatory pension fund member acquires the right to an old age pension according to the Law on Pension and Disability Insurance, the entire amount of accumulated funds on their account will be used, with the right of members’ personal choice regarding:

a) Life annuity purchase that is payable by an insurance company authorized for this purpose; or
b) Programmed withdrawals provided by the company managing the mandatory pension fund with which the member will conclude a programmed withdrawals agreement; or
c) Combination of the options listed in points a) and b).

The annuities payment will be applied after the issuance of the first license for insurance work performing in the annuities class and annuities payment for pension beneficiaries.

If a member of a mandatory pension fund is entitled to a disability pension, the total amount of funds on the member’s account is transferred to the PADIFNM Fund and the full payment of the disability pension is paid by the PADIFNM Fund. As an exception, if the accumulated funds on the member’s account are more than the amount required for the payment of a disability pension, in accordance to the Law on Pension and Disability Insurance, then the member may choose to use a second pillar pension instead of that pension.

In case of death of a mandatory pension fund member, whose family members are entitled to a family pension, the total amount of funds on the account of that member is transferred to the PADIFNM Fund and the family pension full payment is paid by the PADIFNM Fund.

As an exception, in case the member’s account accumulated funds are more than the amount required for family pension payment, in accordance to the Law on Pension and Disability Insurance, then the family pension beneficiary can choose to use a second pillar pension instead of that one.

There are planned cases in which funds are paid from the individual member account, without exercising the right to a pension, as follows:

  • When the mandatory pension fund deceased member does not have family members who are entitled to family pension, in that case the funds on the account of that member become part of the persons entitled to inheritance and they are treated in accordance to the Law on Inheritance
  • When mandatory pension fund member will not acquire the right to an old-age pension according to the Law on Pension and Disability Insurance, because they have not completed a pension for at least 15 years, they can receive a pension only from the second pillar, if the pension is greater than or equal to 40% of the minimum pension amount, and if the calculated pension amount is less than 40% of the minimum pension amount, the mandatory pension fund will pay the accumulated funds to the member’s account at once. Pension realization only from the second pillar funds and payment of the total accumulated funds in these cases can be done after 65 years of age.
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