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Changing the fund

A fund of the mandatory funded pension (II pillar) can be replaced only with another fund of the mandatory funded pension.

The choice of the pension fund can be changed in two ways:

  • Directing contributions to a new fund – the units of the current fund will be retained and will continue earning in the former fund. After choosing a new fund, your future contributions will be transferred to a new fund, i.e. units of different funds will appear side by side in your pension account.
  • Changing the pension fund units – the units of one pension fund will be replaced with the units of a new pension fund selected by you.

With the choice application:

  • young subscribers can make their first choice of a pension fund and
  • persons already accruing pension can direct their contributions to a new pension fund.

The choice applications can be submitted during the entire year, the desired change will enter into force within up to three working days and already the next contribution will be transferred to the new pension fund.

Since 1 August 2011, the units of the pension funds can be changed three times a year: in January, May and September.

The required application must be submitted and received by the registrar no later than one calendar month before the change is effected:

  • on 30 November to have the change of the units take place on the first working day following 1 January,
  • on 31 March to have the change of the units take place on the first working day following 1 May,
  • on 31 July to have the change of the units take place on 1 September or the first working day following it.

Partial Changing of the Units

Since 1 August 2011, it is possible to transfer to a new pension fund all or only a part (e.g. 25%, 50% or 75%) of the assets collected in the old pension fund.
The percentage of the units subject to redemption, with the accuracy of one percent is indicated next to the name of the pension fund the units of which the person wishes to acquire.

  • If the person wishes to replace all units with the units of another mandatory pension fund, the percentage to be shown must be 100.
  • If the person wishes to replace half of the units, the percentage to be shown must be 50.
  • If with the changing of the units, the person wishes to acquire the units of several pension funds, the share of the units subject to redemption upon changing must be indicated next to the name of each pension fund the units of which they wish to acquire.

Example: Direct from the existing fund to pension fund No. 1 – 50%, pension fund No. 2 – 30%, pension fund No. 3 – 20%. As a result of this application, half of the units of the current fund will be replaced with units of fund No. 1, 30% of the units with units of fund 2 and 20% of the units with the units of fund 3.

Until the deadline for the submission of applications for changing the units (30 November, 31 March or 31 July) the applications may be changed by submitting a new application for changing the units. On that application, the same pension fund must be indicated as the initial fund as the one on the previous application.

Example: An application is submitted: direct from the initial fund − 50% to fund 1 and 50% to fund 2. The next day a new application is submitted: direct from the same fund 30% to fund 4. Result: the first application is cancelled, 30% of the units of the initial fund are directed to pension fund 4.

Should you wish to cancel the application for changing the units and keep the units of the existing fund, a new application must be submitted, in which the existing fund is indicated as the initial fund and the option of the target fund is left empty.

NB! Upon submitting an application for changing the pension fund units, your contributions are not automatically directed to a new fund. If you wish to direct your contributions to a new fund and replace the collected units with the units of a new fund, you are required to submit two applications:

  • choice application – to direct the contributions to a new pension fund and
  • application for changing the units of the pension fund.

NB! The fee for application submission depends on the price list of the channel through which the application is submitted (Internet banks, Pension Centre’s My Account).

Upon changing the pension fund units between the funds of different management companies, the management company the units of which you are surrendering, will charge a redemption fee for taking the units back. In the case of replacements made within the same management company, no additional fees apply.

The redemption fee is not charged from an owner of units of mandatory pension fund who are in the age of old-age pension or from the persons who have five or less years left until they reach such age.

Read more: Funds fees