II Pillar

How does the II pillar work?

The principle is very simple: you invest 2% of your gross salary and the state adds another 4% from your social security tax. This money is transferred to your personal pension account. You choose the fund in which to contribute, the fund invests your contributions and when you retire, an additional pension will be paid to you from your pension account.

The mandatory funded pension (II pillar) scheme is guaranteed by the State Guarantee Fund and the funds accumulated are inheritable. If there should be a pause in your income, the contributions to the II pillar pension fund will stop as well.

Choose the best strategy for you.

Nordea offers four pension funds in the II pillar pension scheme:

• Nordea Pension Fund A Plus (75% equity investments)
• Nordea Pension Fund A (50% equity investments)
• Nordea Pension Fund B (25% equity investments)
• Nordea Pension Fund C (0% equity investments)

About the II pillar pension scheme:

• II pillar is mandatory for all citizens born 1983 or later.
• If you are born before 1977 you can only join III pillar pension fund.
• All contributors can choose the pension fund they want to invest in.
• From your contribution of 2% from gross income state adds another 4% from social security tax.
• You are entitled to get payments from the pension fund after you have reached retirement age.
• II pillar pension fund units are inheritable.

Fund Managers Contribution in II Pillar Pension Funds

Fund manager Nordea Pensions Estonia AS holds a contribution in all of the II pillar pension funds. The size of the contribution as of 22.10.2008 is:

• Nordea Pension Fund A Pluss – 300 000 units
• Nordea Pension Fund A – 1 000 000 units
• Nordea Pension Fund B – 700 000 units
• Nordea Pension Fund C – 300 000 units