You will be entitled to receive payments from your funded pension after You have attained the old-age pension age.
Therefore, you will not be able to receive the funded pension before the state pension. However, if you have accepted that you will be provided with the state pension, but you still continue your employment, you may postpone withdrawal of your funded pension, if you wish.
The amount of the funded pension depends, on one hand, on the contributions or the amount of your salary and on how long the contributions have been made. On the other hand, the amount of such pension depends on the rate of return of the chosen pension fund or on the amount of interest that your contributions have borne. The manner of payment from the funded pension depends on the value of the units of a pension fund that the person has as well as on his or her own choice.
Payments on the basis of an insurance contract
- As a rule, a person enters into a funded pension insurance contract with an insurer (insurance company) for payment of the amounts contributed to a pension fund, and after the conclusion of the contract the fund transfers the amount contributed by the person to the insurer selected by such person.
- Payments are made in the form of annuities, i.e. periodically payable amounts on the basis of the insurance contract – annuities can be equal amounts or increasing amounts and one is entitled to receive payments at least once a quarter.
- Payments on the basis of an insurance contract is mandatory for a person whose collected amount exceeds 50 times the national pension (which today is 50 x 134,10=6 705 euros).
Payments from a pension fund
- If the collected amount is between 10 to 50 times national pension (which today is 10 x 134,10=1 341 to 50 x 134,10=6 705) you will be entitled to choose periodic payments from the pension fund without entering into an insurance contract. If the monthly annuity, i.e. the amount of monthly periodic payment is less than one-fourth of the national pension, you will be entitled to receive periodic payments from the pension fund to the extent of up to one-fourth of the national pension per month.
- If the total amount contributed to mandatory pension funds is less than 10 times national pension (which today is 1 341 euros) you will be entitled to withdraw the whole amount in lump sum.