The First Pension Fund of the Republic of Slovenia
The First Pension Fund (PPS) represents a special type of a pension fund. The fund is designed to cover for payments of pension annuities from insurance policies under supplementary pension insurance and is managed by Modra zavarovalnica.
The premium for the pension annuity was provided with the exchange of pension coupons for insurance policy points. In 1999, shareholders of Authorised Investment Companies that had opted for the exchange and persons who held employment certificates (compensations for the due salaries for 1992) were issued pension coupons. Pension coupons were issued in a non-material form and were freely transferable. A natural person could exchange a maximum of 10,000 pension coupons for an insurance policy of supplementary pension insurance during the period from 15th October 1999 to 31st December 2002.
As of 31st December 2002, pension coupons held by natural persons that had not opted for the exchange were directly exchanged for an insurance policy pursuant to law. All rights of legal entities as well as all natural persons who held pension coupons in excess of 10,000 have been extinguished as of 31st December 2002. Since 1st January 2003, the First Pension Fund is a close-end mutual pension fund.
The assets of the First Pension Fund comprise:
- The saving part of the fund, i.e. assets subscribed to the policies of supplementary pension insurance for the period during which the insured persons have not yet met the criteria to attain the right to a monthly annuity;
- The Guarantee Fund of the PPS, which was established on 13th July 2004, when insured persons above the age of 60 attained the right to the annuity.
About the Guarantee Fund of the First Pension Fund
The Guarantee Fund is a separate pool of assets designed with the purpose of covering obligations to insured persons arising from the payment of monthly pension annuities. The fund is established by means of exclusion of assets from the assets of the PPS fund, when the insured person meets the criteria for the payment of the monthly annuity. The key element of attaining the right to receive pension annuity is the age of the insured person (person must be 60 years old). The age of the person has an important impact on both the calculation of the amount of liability by the PPS for the transfer of assets to the guarantee fund as well as on the determination of the date of commencement of this liability.