Organisation and financing of occupational pension funds
The 2nd pillar is financed through capitalisation. Throughout their actives lives, all age categories constitute a capital. A cover capital is invested to guarantee the payment of future benefits. The state contributes only indirectly to the financing of pension funds, by granting tax exemption on the contributions and 2nd pillar assets. The pension funds are responsible for the proper implementation of occupational pension provision.
Organisation of occupational pension funds
Occupational benefits institutions must properly carry out occupational benefits provision. This is a legal requirement. Occupational benefits institutions are managed on a joint basis and are overseen by state authorities.
Financing of occupational pension funds
The occupational pension system covers the old age, death and disability risks, and is generally financed by a funded system. This system is essentially based on individual saving capitals, which are made up of contributions paid during working life and interest earned on these contributions.