Realization of rights
In accordance with the Mandatory Fully Funded Pension Insurance Law, Mandatory Pension Fund members shall be entitled to using their funds from their individual accounts as:
- Part of their old-age pension;
- Disability and family pension, in cases specified by law.
When any member fulfills the conditions for retirement, he/she shall be entitled to:
- Programmed withdrawals
- A combination of these options
The manner of using the funds after fulfilling the retirement conditions shall be a personal choice of the member.
Notwithstanding the application of the Law on Payment of Pensions through Annuities or Programmed Withdrawals, when a Mandatory Pension Fund member acquires the right to an old-age pension under the Pension and Disability Insurance Law, he/she may withdraw the entire amount from his/her individual account.
If a member meets the requirements for disability retirement:
- The total amount of funds on the individual account of such member shall be transferred to the PDIF;
If the accumulated assets of a Pension Fund member are greater than the amount required for a disability pension, the Pension Fund member may select one of the rights (purchase of annuities, programmed withdrawals or a combination of both) that may be used by a member having acquired the right to retirement.
If on the other hand, a member or a temporarily assigned insured person acquires the right to a temporary disability pension in accordance with the Law on Pension and Disability Insurance, the temporary disability pension shall be paid from the PDIF, while the individual account assets shall remain in the Mandatory Pension Fund until the member acquires the right to retirement, disability or survivor’s (family) pension.
In case of death of a member:
- If his/her family members meet the requirements for a family pension, the total amount of funds from such member’s account shall be transferred to the PDIF;
- If the accumulated assets of a Pension Fund Member are higher than the amount required for payment of a family pension, the family pension user can choose one of the rights that may be used by a Mandatory Pension Fund Member who has acquired an old-age pension (purchase of annuities, programmed withdrawals or a combination of both options).
- If a deceased member of a Pension Fund has no family members entitled to a family pension, the funds from such member’s account shall become part of his/her estate and such funds shall be handled in accordance with the Law on Inheritance.