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 - 23,59%
- Employee's social security contributions - 10,50%
- 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 25,50% (or other rate then in force) from the employer’s contributions;
- personal income tax at the rate of 25,50% 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 the Bank of Latvia |
0% Payments to the Bank of Latvia are covered by Pension Fund. |
|
| Fees on savings (per year) |
Pension plan |
|
| Stability + 25 |
Dynamics + 60 |
Dynamics + 100 |
Dynamics Index |
|
| - To the pension fund |
0.26% |
0.26% |
0.26% |
0.26% |
The fee is deducted automatically from the savings. |
| - To custodian bank |
0.09% |
0.09% |
0.09% |
0.09% |
The fee is deducted automatically from the savings. |
| - To the asset manager |
0.34% |
0.34% |
0.34% |
0.22% |
The fee is deducted automatically from the savings. |
| Change in the sum of contributions |
Free of charge |
|
| Pension account statement on Internet Banking site, at branches |
Free of charge |
|
| Switching the pension plan |
Free of charge |
|
| Closing |
| Payout of accrued amount |
Free of charge |
The minimum amount for partial payout of reserve - 30 EUR. The minimum reserve after partial withdrawal of the reserve is at least 30 EUR. |
Effective from 12.01.2023.
Making contributions
The easiest way for an employer to make contributions into a pension fund for their employees is to use the Business Internet Banking site’s section "Payments, accounts" / "Payments" / "Import of payments".
To use the payment import functionality, you need to prepare an XML file in ISO format.
- The company can import payments from the company's accounting software by generating an xml file in ISO format.
- If the company does not have the possibility to use the payment import from the company's accounting software or to use it in ISO format, it can use our Excel file template with a built-in function to convert it to the required xml file in ISO format.
The instruction for payment import to Internet Banking is available here and a description of payment import from accounting systems is available here.
With payment import, it is possible to import contributions to different pension plans and for several employees at the same time with a single file. You can import payments at any time on a 24/7 basis.
Alternatively, the employer can make the contributions by a regular transfer, specifying in the payment details the forename, surname, individual pension account and identity number of the employee for whom the contribution in the pension fund is made. This is a convenient option in case of contributions for only a couple of employees.
The amount and frequency of contributions to the pension fund is up to the company.
| Beneficiary: |
Account number of the pension plan: |
| Swedbank pension plan Stability+25 |
LV19HABA0551004769650 |
| Swedbank pension plan Dynamics+60 |
LV47HABA0551004769825 |
| Swedbank pension plan Dynamics+100 |
LV03HABA0551015454488 |
| Swedbank Pension Plan Dynamics Index |
LV49HABA0551051441727 |
Contributions will be credited to the participants’ individual pension accounts on the next business day after the day when the funds have been credited to the account opened for the retirement plan.
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.
