The accumulation of retirement: when to decide

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January 1 of the following year. the restructuring of the pension accrual will come into effect, according to which transfers from Sodra to private pension funds will cease to exist and a new accrual formula will come into effect: people who want to accumulate their old age can contribute 3%. of his salary, and the state will contribute 1.5% to the accumulation of the person. of the average national wage of last year. Those who want to accumulate during the transition period can start from 1.8%. contributions next year and after five years will reach 3%.

The accrual formula of 3 + 1.5 is indicated by the future tax system, when the taxes paid by the employer and the employee are combined, and that the wages of all the employees "on paper" will increase by 1,289 times. The increase in paper wages will change as will the percentage of various benefits or rent paid, but the direct payments in euros remain the same. More about the benefits can be found here.

The Ministry of Social Security and Labor recalls when and how every worker should make a decision – accumulate for the future or not accumulate.

First, it should be noted that two groups of workers will be affected by the restructuring of the pension system. already accumulating residents and unoccupied residents under 40, who will be included in the accumulation system with the right to refuse.

What do I need to know about unoccupied residents under the age of 40?

Up to now, unqualified persons under 40 will be included in the accumulation system next year, but they may refuse to accumulate it. The law obliges unpolluted workers to inform the guard personally up to now. It's going to make Sodra. According to the initial plan, Sodra will inform these residents in two ways through EGAS's electronic service system and personal letters registered. In addition, Sodra and the Ministry will periodically recall the coming determination through public information channels via the public information channels.

Terms and Solutions:

• " Sodra will inform residents in 2019. January 1-31
• If an employee wants to accumulate, he will not need to do anything.
• If the employee does not want to accumulate – he will have to advise Sodra before 2019 of his decision.
  • What is the current accumulation of the population?

    Currently, the accumulation of the population will not be personally informed about the restructuring of the pension accumulation, since it already participates in the accumulation system and has given its consent.However, as the conditions of accumulation change with the reorganization of the accumulation system, these employees will have the opportunity to decide if they want to continue to accumulate at the 2nd pillar or not.

    They will be informed of the possibility of re-decision by tools of 39, public information and electronic management. service to the EGAS population.

    If the current worker wants to continue to accumulate, he will have nothing to do.

  • If the currently employed worker refuses to accumulate, the decision will require to notify his capitalization company by 2019. June 30 .

  

  The main points approved by the Seimas

  The proposal to accumulate – accumulate more or not accumulate – is left to the choice of the Man, but under 40s and all current accumulators will be included in the new pension accumulation system with the possibility of refusal. The deposit accumulation proposal will be repeated every three years until the person reaches the age of 40 years. By reaching this age, offers will no longer be available for accumulation.

  It is possible to accumulate more . Although the accumulation formula predicts that a person will contribute 3 percent. their salary under the new tax system, but any depositary may decide to accumulate more. He will receive a personal income tax deduction for the additional contributions. If his employer collects the future of his employer, he will be able to apply for income tax relief for additional contributions.

  Break . In the life of any person, there are times when money is needed here and now, so in the accumulation of pensions, we are able to do at least 12 months. break during the entire period of accumulation. This break can be divided into a few months, it is important that the total duration does not exceed one year.

  Lower taxes . After the talks, the Seimas and the government have decided to mitigate the impact of the accumulation on the population by reducing the future contribution of Sodra and the income tax of natural persons. It will offset 1.5 percent. 3% bonuses The person's contribution to the accumulation

  The gradual increase in contribution . The person who wants to win a person does not necessarily have to reach 3% immediately. If a person wants it, they will be able to choose a gradual increase in their contribution over 5 years: from 1.8% to 3%. The gradual growth of the contribution would look like this:

  • 2019 – 1.8 %
  • 2020 – 2.1%
  • 2021 – 2.4%
  • 2022 – 2.7%
  • 2023 – 3%

  How will a person learn to learn? commitment ? The exact information procedure will be determined by the government resolution, but it is already clear that the population will be infected by Sodra through the electronic service system of the EGAS population and personal letters registered. How to refuse to accumulate after inclusion? If a person does not accumulate and does not want to do so at the moment, after receiving information from Sodra, she must inform her decision. As the reform will come into effect from next year, Sodra's personal decision on reluctance to accumulate will have to be notified until 2019. June 30

  It is possible to dismantle those who accumulate. Currently, residents who do not want to do this in the future will have the option to choose between two options: return the sum of money to Sodra or stop the accumulation in the pension fund and leave the money up to the age of retirement. The personal decision must be notified to the accumulation company until 2019. June 30

  Anniversary Provider – Sodra. It is expected that from 2020 the centralized annuity provider will be Sodra. Such a solution is proposed to reduce the pensions earned by people who have accumulated an additional life and have reached the retirement age. The Seimas has decided to establish two types of annuities – deferred and standard, and the mandatory threshold for the acquisition of the annuity has been reduced to 10 thousand. This means that an annuity should be earned if at least 10,000 have been accumulated. l & # 39; euro. More information on annuities can be found here.