Types of pension payments

Pension payments in the system of non-governmental pension programs may be fixed-term and life-long.
Pension fund pays:
Fixed-term pension – payments to the fund’s member during a fixed term.
In this case the member himself/herself indicates the payments’ terms that may not be under 10 years. This limitation is, in fact, a measure to indirectly protect the pensioner himself/herself, as otherwise most citizens would be tempted to withdraw the whole amount of saved funds at once and as soon as possible, which will not solve their income problem in their elderly age.
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Insurance company pays:
Lifelong pension – at the cost of assets transferred by the pension fund to the insurance company chosen by the fund member.
Lifelong pension may be received by the fund member upon concluding an agreement with any insurance company with a life insurance license. Pension fund covers such insurance policy, closes the personal account of the member and is further released from obligations related to pension benefits thereof.
The amount of fixed-term pension for the term not exceeding the average life expectancy upon reaching senior age (15 years for men and 22 years for women) will be greater than the amount of life-long pension. This arises from the fact that fixed-term pension is calculated based on the savings of the member, while the amount of life-long pension accounts for actuarial risk figures (mortality table, correlation of the insured individuals in different age-and-sex groups, demographic situation prognosis).

The retirement age is subject to special attention; such retirement age stipulates when a fund member is entitled to receive pension payments. According to the current legislation retirement age may differ from the retirement age within governmental pension insurance system and be less or greater, however no more than by 10 years.
For example, a male pension fund member may enjoy non-governmental pension starting from 50 years of age. However, such an option is aimed at the citizens who for whatever reasons have problems with employment in their pre-retirement age.
Single payment is not stipulated for the fund members in the form of pension income on common basis. Bases for single payment may be provided by the departure of the fund member to a different country for permanent residency, confirmed severe illness or death thereof. In the latter case the single payment is performed to the inheritors of the fund member.
For more information please call: (044) 230-48-12
E-mail: info@pension-invest.com