The funded pension is a part of Estonia’s state pension system. In 1998, the fully voluntary supplementary funded (i.e. 3rd pillar) pension was introduced. Since then, 3rd pillar pension funds have been registered centrally in the Estonian Central Register of Securities, by law, and units have been registered in securities accounts.

The funded pension is a part of Estonia’s state pension system. In 1998, the fully voluntary supplementary funded (i.e. 3rd pillar) pension was introduced. Since then, 3rd pillar pension funds have been registered centrally in the Estonian Central Register of Securities, by law, and units have been registered in securities accounts.

Pensionikeskus AS (a 100%-owned subsidiary of Nasdaq CSD SE) acts as central registrar for the 2nd and 3rd pillar pension funds in Estonia.As central registrar of the 3rd pillar pension funds, the following functions are performed:

  • Maintenance of the participants’ accounts;
  • Registering applications/orders of the participants (subscription order, re-subscription order, redemption order, switch order, insurance contract order, succession order, court redemption order);
  • Issue and redemption of the assets on the participants accounts (incl. swap, inheritance and transfer to insurance contract;
  • Transfer of the assets from investors to asset managers and vice versa;
  • Dividing commission amount from subscription/redemption amount (when applicable);
  • Tax accounting and transfer to Tax Board;
  • Providing up-to-date information on the performance of the 3rd pillar funded pension system.

The 2nd pillar, mandatory funded pension system was launched in May 2002. All private individuals, pension investments and transactions of the 2nd pillar are registered centrally in Funded Pension Register.

As central registrar of the 2nd pillar funded pensions, to organize registering, presenting and preserving all data, the following functions are performed:

  • Maintenance of issuers’ data;
  • Maintenance of the investors’ pension accounts;
  • Registering applications of the participants (selection application, units exchange application, application for the opening of a funded pension, application for a single disbursement, pension agreement application, application of inheritance);
  • Issue and redemption of the assets on the participants accounts (incl. swap, inheritance and transfer to insurance contract);
  • Recording the change of investment plans;
  • Transfer of the assets from investors to asset managers and vice versa;
  • Dividing commission amount from subscription/redemption amount (if necessary);
  • Providing up-to-date information on the performance of the 2nd funded pension system;
  • Tax accounting, declaring and transfer to Tax Board;

Click here to visit Pensionikeskus AS website.