Pension ABC

If you are a public servant in the Republic of Slovenia, you are a member of a Pension Fund for Civil Servants (KPSJU), which is managed by Modra zavarovalnica.

With other words, if you are an employee of University of Maribor, University of Primorska or University of Ljubljana, you are insured with Modra zavarovalnica.

At this moment civil servants actually have no choice. The collective supplementary insurance for civil servants is the result of a social partnership in the public sector. The social partners adopted a decision in which the state organises supplementary pension insurance for its employees by means of establishing the Pension Fund for Civil Servants (KPSJU).

The purpose of establishing the pension fund is the collection of assets on the personal accounts of civil servants, which are intended to provide them with a supplementary pension along with the I. pillar pension from compulsory pension insurance after retirement.

Modra zavarovalnica provides the additional (supplementary) pension for civil servants. Every civil servant gets a personal account, where funds are collected and grow.

Monthly premiums are paid by employers. Members of the pension fund themselves can pay additional premiums to ensure a higher income after retirement.

It depends on who is (will be) your further employer.

If you continue working in a public sector, your new employer will continue paying monthly premiums for you (in KPSJU fund) on the same personal account. The height of the premium paid by the new employer depends on whether you started working for the new employer after intermediate interruption or not. In case of intermediate interruption, you are entitled to the lowest premium.

If you start working in a private sector, you have various options:

• If your new employer doesn’t provide collective supplementary pension insurance, yet you wish to continue saving for your old age in the Modra zavarovalnica pension funds, you can enter the MKPS Fund individually or inform your employer of your desire for collective supplementary pension insurance under the MKPS scheme. MKPS is a pension fund, similar to KPSJU fund.

• If your new employer doesn`t provide collective supplementary pension insurance and you have no desire to pay premiums individually, your KPSJU supplementary pension insurance policy will lie dormant. This means that you will be able to receive the additional pension after your retirement. The sum of the premiums you paid in individually can be obtained at any time. The assets collected will continue to increase in value pursuant to the Fund's rate of return.

• If your new employer provides supplementary pension insurance at Modra zavarovalnica, you will be included in the pension scheme under the new pension fund (MKPS fund). The policy or account accruing the premiums paid in under the KPSJU scheme can lie dormant or you can decide to transfer your assets to the new pension fund.

• Even though your new employer provides supplementary pension insurance at a competitive company, your supplementary pension insurance policy at Modra zavarovalnica can lie dormant. This means that payments are suspended, while the assets collected will continue to increase in value pursuant to the rate of return. The alternative is for the assets collected under the KPSJU scheme to be transferred to the other pension insurance provider; however, you lose the special saving benefits in the KPSJU Fund, namely the substantially lower costs of management.

Your supplementary pension insurance policy at Modra zavarovalnica can lie dormant. This means that payments are suspended, while the assets collected will continue to increase in value pursuant to the rate of return.

The alternative is for the assets collected under the KPSJU scheme to be transferred to another pension insurance provider; however, you lose the special saving benefits in the KPSJU Fund, namely the substantially lower costs of management.

Supplementary pension in case of retirement.

No.

The amount of the supplementary pension depends on many factors such as the age at the beginning of the payment, the applicable mortality tables, the amount of funds collected on a personal account.

You can use the informative calculation and see what you can expect (only available in Slovenian language)

Yes you can. Besides the premiums that are paid by employers into the fund, civil servants themselves can pay additional premiums, ensuring that their pension will be higher. A key advantage of this type of saving is the fact that the premium payer is eligible for tax relief.

General answer would be: When you are retired. After retiring a member of the pension fund becomes entitled to the additional (supplementary) pension.

When a public worker, researcher is retired, a (former) employer let Modra zavarovalnica know about that. Modra zavarovalnica then sends a letter with some informative calculations about the height of different kinds of additional pension they can choose between.

It is possible to apply for informative calculations even before retirement. The best way is to contact advisors at Modra zavarovalnica.

The amount of the supplementary pension depends on many factors such as the age at the beginning of the payment, the applicable mortality tables, the amount of funds collected on a personal account.

You can use the informative calculation and see what you can expect (only available in Slovenian language).

It is possible to pay out the pension to accounts everywhere in the world. However, when the account is not in the SEPA area additional costs that incurred are to pay by the receiver of the payment (in the amount of 4 €).

Please note:

e.Modra.si is Modra zavarovalnica's web application, which is currently used for customers, you have to register first and than use it 24/7.