Pillar II and Pillar III pensions and pension payments

Pension insurance based on individual capitalised savings in the Republic of Croatia and the scope of activities and competence of Hanfa with respect thereto are regulated by the Mandatory Pension Funds Act, Voluntary Pension Funds Act, Pension Insurance Act, Act on Pension Insurance Companies and relating subordinate legislation.

Pension insurance based on individual capitalised savings is known as the second and third pillar. The second pillar pension system involves mandatory pension funds and is compulsory for all employees. The third pillar pension system constitutes voluntary pension insurance and implies individual savings in voluntary pension funds of open-ended or closed-ended type. Open-ended pension funds are open for membership to any natural person interested in becoming a member of an open-ended pension fund, whereas closed-ended pension funds form their membership out of natural persons who are either employed with an employer, or are trade union members, members of associations of self-employed persons or self-employed persons.

The payment of retirement benefits within the framework of mandatory pension insurance based on individual capitalised savings of members of mandatory pension funds is made by pension insurance companies only. The payment of retirement benefits within the framework of voluntary pension insurance based on individual capitalised savings of members of voluntary pension funds is made by pension insurance companies, but exceptionally, the payment of retirement benefits on a temporary basis may be made by voluntary pension funds under the conditions laid down in the Act on Voluntary Pension Funds.

Pensioners within the framework of mandatory pension insurance receive their retirement benefits from the pension insurance company in line with assets transferred from a mandatory pension fund. Pensioners within the framework of voluntary pension insurance receive their retirement benefits from the pension insurance company on a lifelong or temporary basis in line with assets transferred from a voluntary pension fund. The pension insurance company also pays retirement benefits based on lump-sum payments made by persons into the pension insurance company and carries out other activities related to pension insurance subject to prior approval or authorisation of Hanfa. Supervision of business operations of and the procedure of granting authorisation to pension insurance companies are carried out by Hanfa.

The establishment and business operations of mandatory and voluntary pension funds, the establishment and business operations of pension companies managing pension funds and business operations of the Central Register of Insured Persons are regulated by the Mandatory Pension Funds Act and Voluntary Pension Funds Act.

The establishment and business operations of pension insurance companies, pension schemes, pension benefits and the payment of pension benefits are regulated by the Act on Pension Insurance Companies.

The Act on Lifelong Severance Payment or Supplementary Pension Purchase regulates the right to receive lifelong severance payment or the supplementary pension purchase based on the social understanding among employers, trade unions and employees pursuant to the collective agreement or the agreement between the employer and the supplementary pension purchase company. The said act also regulates the establishment and business operations of companies carrying out supplementary pension purchase.

This web page provides a link to the list of pension companies and pension insurance companies authorised by Hanfa, including a list of registered mandatory and voluntary pension funds.