3rd Pillar Pension

Employer's contributions for the Third Pillar Pension plans increase employee’s motivation and strengthen loyalty for the company. There is important tax relief for the contributions to the private pension fund. It is particularly advantageous for the employer compared to other benefits granted to the employees.

For the employer's contributions for the Third Pillar Pension plans which do not exceed 10% of the employee's gross annual income there is tax relief:

  • The employers' social security contributions are not charged (24.09%).
  • The employee's social security contributions are not charged (11%).
  • The employer's contributions are imposed upon Personal Income Tax only upon receipt of funds.
  • Company taxable income (15%) is reduced.

Nordea experts will help to calculate the potential savings and establish an effective reward system, so both the company and the employees are winners.

  • Opportunity to motivate all or part of the employees in accordance with the criteria set out by the company.
  • Saving of funds for the wages and lower tax payments.
  • The company has the possibility to choose the most beneficial amount and frequency of payments to get flexible payment arrangements in Nordea Pension fund.
  • Possibility to invest in one or both Nordea private pension plans.
  • Professional consultations on the contributions of long-term savings in the company's reward system.
  • Higher income on retirement.
  • Possibility to access the accumulated assets upon reaching the age of 55.
  • Assets accumulated in 3rd Pillar Pension scheme are inheritable.
  • An employee can choose to build savings in the pension plan selected by the company or transfer to another plan.
  • Savings are in a safe place since the contributions are made in the licensed pension plans supervised by the Financial and Capital Market Commission.
  • In addition to the employee's contributions the employee can make the contributions to his/her 3rd Pillar Pension assets and apply for personal income tax reliefs.
  • Up to 25% of the assets are invested into equities, namely, stocks and other similar means of investment. The remainder will be invested in fixed-income financial instruments: bonds, deposits of credit institutions. Pension plan currency is EUR. Pension plan funds are located in the international financial markets, including investment funds.
  • This investment strategy is suitable for the company's employees for whom it is important to have relatively safe and stable, although a slight increase in the capital and for whom there are less than 10 years left until the planned savings receipt.


Nordea balanced pension plan commissions form the contributions:

For pension fund 1.00%
FCMC 0.40%


Nordea balanced pension plan annual commissions from average assets:

For pension fund 1.00%
For funds holder 0.15%
For funds manager 1.10%
 
  • Up to 75% of the assets are invested into equities, namely, stocks and other similar means of investment. The remainder will be invested in fixed-income financial instruments: bonds, deposits of credit institutions. Pension plan currency is EUR. Pension plan investments are located in the international financial markets, including investment funds.
  • Such investment strategy is suitable for the employees of the company who expect potentially high return and can accept significant asset fluctuations and for whom there are less than 10 years left until the planned savings receipt.

 


Nordea progressive pension plan commissions form the contributions:

For pension fund 2.00%
FCMC 0.40%

 

Nordea progressive pension plan annual commissions from average assets:

For pension fund 1.00%
For funds holder 0.15%
For funds manager 1.60%