1. Concerns and
Reform Proposals
Martin Helme
Minister of Finance
30.09.2019

2. FREEDOM OF MEMBERSHIP
All people, who are in the II pillar can opt-out
All people, who are not covered by II pillar can opt-
in
no any deadline for those options
it is permanent choice

3. FREEDOM HOW TO INVEST
Two options for all:
Collect and invest in pension funds
Investment decisions are made by the pension fund managers
Collect and invest through personal pension
investment account NEW!
Investment decisions are made by the person himself

4. FREEDOM TO USE MONEY
NEW! option to take money out before pension age, BUT:
It can be used only two times during the accumulation period
If option is used, contributions to II pillar are not allowed for next 10 years
If option is used second time, II pillar membership is ended
withdrawn money is taxed (20%)

5. FREEDOM AFTER RETIREMENT
No restrictions how to use money after retirement
age NEW!
Can be
regular payments from pension fund
pension contract with insurance company
lump sum from pension fund

6. TIMELINE
2019 – legal changes
2020 – implementation
2021 – reform is in full force

7. Thank you!