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3rd pillar pension

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Swedbank AS is processing personal data according to the „Swedbank” AS Principles of processing personal data, which are available on the Swedbank AS webpage www.swedbank.lv under Terms and Conditions and in customer service locations of Swedbank AS.

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Why are savings important for employees?

Human resources are the key to success in business in any circumstances. Savings are one of the most important benefits that an employer can offer for additional financial security of employees.

Savings in a private pension fund in favour of employees:

  • Boost long-term motivation of employees and increase loyalty to the employer.
  • Allow taking advantage of tax relief.
  • Improve the company’s prestige and competitiveness on the labour market.
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 It has proved true historically that in case of comparatively long accrual periods (over 10 years), choosing pension plans with higher equity investment proportions offers best value as they have been able to produce better yield indicators. It has proved true historically that in case of comparatively shorter accrual periods (less than 10 years), choosing pension plans with lower proportion of investments in equities offers a better performance as they are less exposed to fluctuations on equity markets.

Tax relief

Employer's pension deposits in private pension funds are not being taxed as long as they do not exceed 10% of employee's gross wage.

Motivated employees

Pension contributions in private pension funds allow for improving your corporate motivation system for employees, which increases competitiveness of the enterprise.

Socially responsible employer

Creates a positive employer image in society. Employer who cares for the employees not only in the present moment, but also in the longer term, and who also stimulates creating of savings.

Transparence and service

Companies can easily set up contributions via Internet Banking, while employees can keep track of growth of their savings via Internet Banking as capital is calculated and pension plan performance indicators are updated on a daily basis.

Employer's contributions to private pension funds according to a collective or a private participation agreement, as long as they do not exceed 10% of employee's gross wage, are not taxed with following taxes:

  • Employer's social security contributions - 24,09%
  • Employee's social security contributions - 11%
  • Corporate income tax - 20%
  • At the time of making contributions, one is also exempted from personal income tax

When a person reaches 55 years of age or later, the following will be withheld at the time of paying of the capital:

  • personal income tax at the rate of 23% (or other rate then in force) from the employer’s contributions;
  • personal income tax at the rate of 20% from the increase in capital (the profit).

The tax will be withheld automatically by Swedbank Atklātais Pensiju Fonds upon disbursement of the supplementary pension capital.
Service Price
Receiving
Application acceptance Free of charge
Using
Setting up regular contributions Free of charge
Fees on contributions:
- To Financial and Capital Market Commission 0%
Fees on savings (per year) Pension plan
Stability + 25 Dynamics + 60 Dynamics + 100 Dynamics + USD
- To the pension fund 0.26% 0.26% 0.26% 0.26%
- To custodian bank 0.09% 0.09% 0.09% 0.09%
- To the asset manager 0.34% 0.34% 0.34% 0.34%
Change in the sum of contributions Free of charge
Pension account statement on Internet Banking site Free of charge
Switching the pension plan Free of charge
Closing
Payout of accrued amount Free of charge

Effective from 01.01.2020.

Useful links

Making contributions

The easiest way for the employer to make contributions into a pension fund for their employees is to use the Pension Payment (similarly to salary payments) option under “Payments” section on the Business Internet Banking site. When contributions are made using the Pension Payment option, the employer saves time as all contributions for employees can be made by importing a single file and transferring them in a single payment. To see an example of pension payment, click here. Before the Pension Payment option can be used, it needs to be enabled at any Swedbank branch and the company’s representative who will be able to do it must be specified.

Alternatively, the employer can make the contributions by a regular transfer, specifying in the payment details the employee’s forename, surname, identity number and personal pension account for which the contribution is being made in the pension fund. This is a convenient option in case of contributions for only a couple of employees.

If the number of employees is quite large and for some reason the Pension Payment option cannot be used, the employer can make a single transfer for all employees and, subject to prior arrangement, send the details about the contributions to Swedbank Atklātais Pensiju Fonds AS by e-mail to pensijas3@swedbank.lv, followed by the original of the details of contributions by post to Swedbank Atklātais Pensiju Fonds AS, Balasta dambis 15, Rīga LV-1048.

Participants’ access to capital

The pension fund participants are entitled to receive the accrued supplementary pension capital at the age of 55. However, one can also choose to start receiving the accrued capital later, at the end of active working life, e.g. at the age of 60 - 65. The capital can be received:

  • in parts over a longer period of time, e.g. a set monthly amount (the portion of capital left in the pension fund will continue to generate investment income);
  • all at once in a single payment.

After starting to take out the supplementary pension capital, contributions still can be continued. To receive the accrued supplementary pension capital, the employee must fill out an application on the Internet Banking site or go to any Swedbank branch. The supplementary pension capital will be paid out within 10 working days. The supplementary pension capital is heritable.

If contributions into the pension fund were made by the employer, then, upon receipt of the accrued supplementary pension capital, the personal income tax is payable, whereas capital gains is payable on the investment profit.

Pension plans

{ "subtitle": { "text": "Stability+25" }, "chart": { "height": "80%" }, "plotOptions": { "pie": { "size": 110, "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Balanced investment strategy

Plan currency - EUR

Suitable for you:

  • if you're older than 50 years or
  • if you do not want to risk with your money
 { "subtitle": { "text": "Dynamics+60" }, "chart": { "height": "80%" }, "plotOptions": { "pie": { "size": 110, "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Balanced investment strategy

Plan currency - EUR

Suitable for you:

  • if your age is between 40 and 50 years or
  • if you are ready to take a partial risk on fluctuations of your investments
 { "subtitle": { "text": "Dynamics+100" }, "chart": { "height": "80%" }, "plotOptions": { "pie": { "size": 110, "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Active investment strategy

Plan currency - EUR

Suitable for you:

  • if you are younger than 40 years or
  • if you are ready to take a significant risk on fluctuations of your investments
 { "subtitle": { "text": "Dynamics+USD" }, "chart": { "height": "80%" }, "plotOptions": { "pie": { "size": 110, "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Balanced investment strategy

Plan currency - USD

Suitable for you:

  • if you want to make savings in U.S. dollars
  • if you are ready to take a partial risk on fluctuations of your investments

Before investing in a pension plan it is recommended to evaluate risks associated with investments, taking into account that, if Pension Plan invests more in shares and similar securities, then higher is risk that the value of pension plan investments may rise or fall in positive or negative direction. Pension plan for past performance is no profitability in the future.
Description EUR
Supplementary pension capital 0.00
Contributions, total 0.00
Profit 0.00
Personal income tax from capital gain1 0.00
Personal income tax from capital gain1 0.00
Upon supplementary pension capital payout,the employee receives 0.00
Employer’s economy2 0.00

  • The accrued supplementary pension capital becomes available upon reaching 55 years of age
  • 1 For calculations it is assumed that the personal income tax rate will not change during the accrual period and yearly contributions are less than 10% of yearly gross salary
  • 2 Assuming that the employee chooses to make contributions in the Pension Fund as an alternative to net pay rise
  • For calculation it is assumed that the accumulation is made in one of the selected pension plans "Stability+25", "Dynamics+60", "Dynamics+(USD)" or "Dynamics+100" with an average imagined yield of 2.05%, 4.05% or 6.05% respectively, after all fees mentioned in prospectuses.
  • The actual return of pension plans may differ from returns used in the calculations and historic yield is not a guarantee for an equivalent performance in the future.

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