FAQ or Frequently Asked Questions regarding the 3rd pension pillar

What is a 3rd pension pillar?

3rd pillar of the  pension system is a possibility for you to form additional savings for your pension on voluntary basis. It means that in addition to 1st and 2nd pension pillars you can individually of via your employer invest a part of income to one of the private pension funds. It is a perfect opportunity to take care of your old age and a supplement to the state guaranteed pension

Who manages accrued contributions of the 3rd pension pillar?

The assets are managed by the investment society „GE Money Fondi”, which has received a special permit - license issued by the Financial and Capital Market Commission (FCMC). The FCMC issues this license only in case an investment society has at least one-year experience in private pension funds or investment funds asset management, and if this investment society works qualitatively

Who supervises and controls „GE Money Fondi” work?

• „GE Money Fondi” licensing and control is carried out by the FCMC, which can suspend or cancel the license issued to the asset manager if violations are noted in his work. The FCMC's task is to ensure that „GE Money Fondi” and „GE Money Bank” observe the law and other normative act requirements, obligations and restrictions provided for in the investment plan prospects, and accounting principles.
• Daily control of asset managers is also performed by "GE Money Bank", in which the securities purchased for investment plan assets, and uninvested money is stored.
• Moreover, all these assets are stored separately from „GE Money Bank” and „GE Money Fondi” own means and assets. It ensures investment plan asset security

Where will my accrued assets go if your license is cancelled?

The accrued pension capital is a property of participant and in such case these means will be automatically transferred to another 3rd pillar pension fund.

When will I be able to receive these funds?

After reaching 55 years

Is it possible to receive the whole accrued sum at once?

Yes, it is possible but there is also a possibility to receive savings in parts and the remaining part of capital will continue to increase. 

What happens if I don’t reach the age of 55?

3rd pillar pension capital is a property of participant, and it can be inherited

How often can I change my pension plan?

3rd pension plan participants can transfer their additional capital (a part or whole) to another pension plan or pension fund at any moment. We will fulfill the order within one month without any terms or penalties.

How can I find out what is going on with my private pension capital?

Once a year „GE Money Fondi” sends a detailed report on individual state of account, contributions made during the previous year, expenses and return on investment to all participants

Can I refuse from participation in the 3rd pension pillar system?

Yes, it is possible to suspend making contributions into the 3rd pension pillar capital and receive the already accrued capital at the age of 55 years.

Can a 3rd pension pillar participant accrue funds at two asset managers at the same time?

Yes, it is possible.

Benefits of saving with the GE Money Pensija (Pension) 3rd pillar pension plans:

• Opportunity to save a higher pension
• Opportunity to receive the pension capital by the age of 55
• Opportunity to receive State tax repayment for funds channelled to pension, if these funds do not exceed 20% of your salary
• To bequeath the pension capital to one's family
• To ensure stable level of life after retirement

Where and how can I get additional information?

Additional information on the 3rd pillar pension plans offered by GE Money Pensija can be found:

• At GE Money Bank branches and sub-branches throughout Latvia
• On the Internet web site or by e-mail info@gemoneybank.lv

Where and how to apply?

In order to become a participant of the GE Money Pensija (Pension) funds, you must to fill out and sign an application at any GE Money Bank branch, by presenting a personal identification document.