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ABOUT II PILLAR

 

WHAT SHOULD A FOREIGNER EMPLOYED IN CROATIA KNOW ABOUT THE CROATIAN PENSION INSURANCE SYSTEM?
 
 
 
Insured person – a person that has an established compulsory pension insurance based on individual capitalized savings (II pillar of pension insurance) in accordance to the Pension Insurance Act (more at HZMO - Croatian Pension Insurance Institute)
 
 
Compulsory pension insurance

Pension insurance that includes parts of active working population, based on their ability and status, regardless of their willingness.
In Croatia it is conducted as:
  • Compulsory pension insurance based on generation solidarity (within Croatian Pension Insurance Institute)
  • And compulsory pension insurance based on individual capitalized savings (within compulsory pension funds).
 

Fund member – an insured person that is registered at II. pillar compulsory pension fond (further OMF)
 
 
Who should be a member of the II. pillar of pension insurance?
 
All individuals that for the first time after 1.1.2002. attained insured person's qualification (employment, second income - «part-time fees», self-employment, additional benefits,...), are less then 40 years of age and have never been insured in accordance to Pension Insurance Act (more at HZMO) mandatory are members of II. pillar pension insurance.
 
What is the deadline for registering at II. pillar after the beginning of employment?
 
  • A 6 months period since the day of attaining insured person's qualifications,
  • It is recommended to choose a compulsory pension fund at REGOS'  counter at any business office of  FINA, (Insured person registers at OMF for the first time based on a valid identification document that contains ID number-MBG, and a photograph -identity card, passport, driving license).
  • If no OMF is chosen during that period, REGOS, according to law regulations, is going to allocate the members in one of the existing OMFs ex officio.
  • By delivering the document about ex officio formation, REGOS is simply informing the insured person about the membership in one of OMFs, which is not requiring the pension contribution.
  • Finishing the register (by personal choice or ex officio) initializes the opening of a an individual account of the OMF member

 
Who is obligated to pay contributions for the II. pillar and what amount?
 
All Act regulated compulsory contributions are payed by employer, and for II. pillar of pension insurance that amount is 5 % of gross wages.
 
 
What is an individual account?
 
Individual account is an account, of member of OMF, that was opened to record gathered contributions for pension insurance of II. pillar and assets capitalization yield.
 

How to check the balance on my individual account?
 
  1. You can check the status of your individual account at www.regos.hr.  
  2. To do that, a member of OMF needs to have ePASS  that he can get while registering to OMF in FINA.
  3. If the account status is different then expected, there can be various reasons for it, and OMF members should first address their employer to check if the employer calculated and made the payment of compulsory II. pillar contributions.
  4. In case those obligations were properly carried out, and the problem still exists, OMF members can contact REGOS Call center, phone number 01/4898 999, or send an e-mail to regos@regos.hr.
 
 
Pension from II. pillar of pension insurance
 
Here are four basic steps to achieve the pension rights from II. pillar of pension insurance:
 
  1. Croatian Pension Insurance Institute (HZMO) issues the future pension beneficiary the Arrangement of pension rights admission, and for the II. pillar members it submits data from the Arrangement to REGOS.
  2. The insured person chooses Pension Fund Management Company that will pay out his II. pillar pension and, after regulated procedure, REGOS issues an order to transfer assets from the individual account of  II. pillar fund member (future pension beneficiary) to the account of chosen Pension Fund Management Company.
  3. The Company concludes a Pension contract with the insured person after REGOS submits informations about total amount of capitalized contributions at individual account on a day of closure of individual account.
  4. From allocated funds, reduced for a regulatory fee, pension insurance company, in accordance to concluded Contract, pays out retiree a monthly life II. pillar pension.