FAQ | Mandatory pension fund

Mandatory members - Insured persons who obtained their first employment after 01.01.2003 are mandatory members of the second pillar. They need to choose the fund they want to be a member of within three months following their first employment. If they do not choose a fund themselves, they will become members of the pension fund to which they were initially allocated randomly by a competent institution of the state. Voluntary members - Insured persons who obtained their first employment before 01.01.2003 are voluntary members. Voluntary members may be pension fund members only if they conclude a membership agreement with a mandatory pension fund within 3 months after they return to employment.

Pension and disability insurance contribution for persons who are members only of the state run pension fund (the first pillar) stands at 18% of their gross pay fully paid into the Pension and Disability Insurance Fund of Macedonia. In case of members of the mandatory pension fund (the second pillar), 12 % out of the contribution rate of 18% pension insurance is paid into the PDIFM, and 6% is paid into the mandatory pension fund on an individual pension account of the insured person. The third pillar is voluntary pension insurance assisted by tax reliefs provided by the state. The funds are paid in individually or by an employer to a pension account of the member, with no obligation on the part of the member in terms of regular contribution payments or in terms of amount of contributions.

You can become a member of a mandatory pension fund if you go to one of NLB Banka AD Skopje branches, in the premises of the Company on Majka Tereza st, no. 1 in Skopje or you may want to set up an appointment with an agent on 02/ 15 500 or e-mail us on kontakt@npf.com.mk

How do I choose a pension fund? All you need to do is make contact with the pension Company of your choice (or with both companies) and in a contact with a licensed agent you may get all the information you need to make a decision about which company you can join as a member. Please cal 02/15 500 or send us an e-mail on kontakt@npf.com.mk

If you are a member of a mandatory pension fund and want to migrate to another mandatory pension fund, you need to sign a transfer agreement with the company managing the other mandatory pension fund and also sing a statement of consent. If the membership in an existing fund has been shorter than or equivalent to 720 days, you need to pay a transfer fee, and if the period of membership exceeds 720 days, the transfer is free of charge.

The mission of the Company regarding fund management is to generate optimal yield in the long run through active management of funds of the mandatory pension fund observing risk tolerance, rules and regulations for risk monitoring and management, legislative framework and internally defined limits in investing. The yield fluctuates and depends on how successfully the company invests the funds of the pension Fund and on the fees it charges to its members.

At the domestic capital market, the mandatory pension fund is one of the largest investors with significant holdings in the ownership structure of the most reputable Macedonian companies listed on the stock exchange who produce adequate results (they produce profit, invest in their assets to stimulate sales growth in the future and distribute a portion of their profits as dividend). In foreign markets, the pension fund invests in companies from the European Union an OECD with a high credit rating and positive results

The right to the use of you fund from the individual account comes alive after you become entitled to receive pension in accordance with the Law on pension and disability insurance. Generally speaking, it means retirement at 62 for women and at 64 for men, with a minimum of 15 years of service The second pillar members receive their pension both from the PDIFM and from the institution authorized to make payments of the second pillar pension.

The money on the individual account of the decedent is inheritable save in the case when the deceased member has family members who are entitled to a pension under the Law on pension and disability insurance. In such cases a relevant institution looks in to the pensions to check and verify which would be higher. If the calculation of the family pension is higher when coming from the second pillar, family members entitled to pension have the right to waive the family pension paid from the first pillar and use only the family pension paid from the second pillar.

When a member of the mandatory pension fund reaches the retirement age under the Law on pension and disability insurance, the full amount of accumulated funds on his/her account will be used at personal discretion of the member, who can choose one of the following modalities: а) scheduled withdrawals provided by the pension company б) temporary scheduled withdrawals combined with lifelong deferred annuity в) lifelong immediate annuity paid by the pension insurance company (payment of annuities will be made after the first license for insurance in the class of annuity and payment of annuity for pension beneficiaries is issued)

Your future pension depends on several factors, above all on the amount of accumulated funds on your account as on the type of pension modality you have chosen.

If you change any of your personal data, it is very important that you update your personal data immediately. Please visit one of NLB Banka AD Skopje branches or come to the main office of NLB Nov Penziski Fond AD Skopje and fill in an application for update / correction of personal data in the presence of an authorized person / agent of the company. On our web site you have the possibility to update/correct you personal data on-line.

NLB Tutunska Banka AD Skopje and NLB Nov Penziski Fond AD Skopje are separate legal entities managing separate records of personal data for their clients members. Therefore you need to fill in a separate form for personal data update for each institution.

The funds accumulated on the accounts of members which are managed by the Company are kept segregated from the assets of the Company kept by a Custodian Bank. If the pension company goes under, the competent authority MAPAS shall conduct a procedure for selection of another company which will take over the management of pension funds.

If you reenter employment now and if you have years of service prior to 1.1.2003, there is a possibility that membership in the second pillar might have negative consequences for you if you have 5-7 year of service. You must call us on 02/15500 and we will exchange information to look into your case. To ensure that you are properly informed, we recommend that you obtain a Report from PDIFM concerning your years of service.