For pension contract holders

Supporting transfer of insurance portfolio of pension contracts

The Annuity Protection Sectoral Fund is used to support the transfer of the insurance portfolio of pension contracts of a life insurance company (insurer) operating in Estonia on the basis of an activity license and the Estonian branch of an insurer from a state that is a contracting party to the EEA Agreement to another insurer.
  • The following states are contracting parties to the EEA Agreement: Austria, Belgium, Bulgaria, Estonia, Spain, Holland, Ireland, Iceland, Italy, Greece, Cyprus, Lithuania, Liechtenstein, Luxembourg, Latvia, Malta, Norway, Poland, Portugal, France, Sweden, Romania, Germany, Slovakia, Slovenia, Finland, United Kingdom, Denmark, the Czech Republic, Hungary.

Pension contract

For the purposes of the Guarantee Fund Act, ‘pension contract’ means the mandatory funded pension insurance contract stipulated in the Funded Pensions Act. 
  • A pension contract is the mandatory funded pension insurance contract entered into by a unit-holder and an insurer.
  • Insurers established in Estonia (life insurance companies) and Estonian branches of insurers established in a state which is a contracting party to the EEA Agreement that hold annuity licenses have the right to enter into pension contracts.
  • Said insurers pay the single contribution to the Annuity Protection Sectoral Fund of the Guarantee Fund and become fund participants when they enter into the first pension contract.
  • The policyholder in a pension contract may only be a natural person who has the right to a mandatory funded pension. A unit-holders right to a mandatory funded person emerges when the unit-holder attains retirement age.

Extent of the amount of support

Transfer of the pension contract insurance portfolio of an insurer to another insurer is supported for out of the the Annuity Protection Sectoral Fund under the conditions and to the extent provided by the Guarantee Fund Act.
The amount of support is found as the difference between the technical provisions and financial obligations corresponding to the pension contracts and the tied assets corresponding to the insurance portfolio.
Performance of the obligations under pension contracts is guaranteed in full to the extent of monthly pension payments equalling one national pension rate as established on the basis of the Pension Insurance Act and to the extent of 90% in respect of the amount that exceeds said rate.
The national pension rate is 205.21 euros.