Licensing applications for compulsory pensions can now be submitted

Today, April 10th, begins the licensing period for the future managers of private compulsory pensions (the 2nd pillar), according to the schedule announced by the Pensions Commission (CSSPP). By August, companies interested in entering this business will rush to file the licensing application, in order to have a compulsory pensions fund available on the market as soon as possible. Under the law, each fund manager can handle only one such fund. August will see the start of the chase for clients, with some 2.5-3.5 millions of employees expected to join this system. Employees aged up to 35 can become involved with 2nd pillar pension funds and will have to opt for one of the funds active on the market. The participation of people aged between 35 and 45 will be optional. Taking part in the system involves transferring part of the social security contributions (usually paid to the public budget) to the private management at no additional costs for the employee or the employer.