Swedbank pension

• You can accumulate „Swedbank” pension in one of these funds:
  • Life-cycle pension funds are balanced funds, each of which is aimed for participants born in the period specified in the name of the fund. You will choose the fund suitable for you according to your date of birth, and you will be able to accumulate in it until your retirement.
  • Traditional pension funds (Pension 5, Pension 4, Pension 3, Pension 2, Pension 1 and Pension pay-out fund) were closed on 16 May 2019 during the implementation of the Republic of Lithuania Law on the Accumulation of Pensions. Participants of the pension system, who had been accumulating in these funds, and their accumulated funds were transferred to “Swedbank” life-cycle pension funds.
• After signing the new pension accumulation agreement, the contribution to your personal pension fund account will consist of two parts: a contribution from your salary (gross) and an incentive state contribution from the budget calculated from the average national wages. More information is provided in “About the process of accumulation”
• The transfer of contributions to the pension funds is administered by SoDra, therefore, you will not have to bother about it.
• In “Swedbank” Internet Bank you can:
  • Check on the quantity of the contributions transferred to your personal pension fund account and the amount accumulated on your pension fund account;
  • Monitor the profitability of the pension funds;
  • Familiarise yourself with the annual report about the funds accumulated in your pension account.
• The pension fund manager “Swedbank investicijų valdymas”, UAB together with “Swedbank Robur Fonder”, AB, a company operating in Sweden, have been achieving good results.
• The accumulated funds are accounted on your personal pension fund account, where they are secure, since they are separated from the assets of the company managing the pension funds and are stored in a depository (Fund depository – “Swedbank” AB, company code 112029651, address Konstitucijos pr. 20A, Vilnius).

The right to receive a pension payout shall be granted to you upon reaching the retirement age or if you are awarded early state social insurance retirement pension. The retirement age calculator can be found here.

Your accumulated funds may be paid in the following ways:

• a single payout or a regular pension payout (by instalments);
• by acquiring a pension annuity (regular pension payout for life)in an insurance company engaged in life insurance activities..

In accordance with the current legislation, the acquisition of a pension annuity for the entire accumulated amount shall be mandatory if the accumulated amount reaches: EUR 20 179 for a 63 year-old person and EUR 19 499 for a 64 year-old person. The mandatory annuity limit decreases with increasing age. If the accumulated amount of a 63-year-old person exceeds the amount of EUR 121 074, the amount that exceeds the specified amount may be paid out in a single payout.

Further information about pension payments is published at http://www.lb.lt

Important: as of 2020-07-01, the payout procedure will change. The type of payouts will depend on the accumulated amount:

• Having concluded the agreement on pension accumulation in pillar II, you will not be able to terminate the accumulation of pension, except for the termination of the first agreement on pension accumulation in pillar II. You can unilaterally terminate the agreement by submitting the application within 30 calendar days from the conclusion of the agreement.
• Your contribution (up to 3% from your salary), which will be transferred to your personal pension fund account, is the part of your personal income deferred for accumulation. The other part of the contribution is the incentive contribution paid by the state.
• The SoDra pension will not decrease because of the accumulation in the fund of pillar II.
• By accumulating in pension funds, you assume the investment risk and there are no guarantees that the value of investment will grow. The results achieved in the past do not guarantee future results.
• Administration fees apply to the pension accumulation.
• More information is available in the Rule of the Pension Fund and the Investment Strategy Document.
• Responsible investment policy.