Furthermore, the volume of collected funds in the second-pillar pension has exceeded the significant mark of 3 billion euros, of which almost 500 million euros are the return on investment of pension plan managers.
“The reached accrual in the second-pillar pension is a significant reference framework, confirming the degree of maturity of the Latvian pension system. The increase in assets was driven by the steady increase in the deposit rate and the return on investments of pension plan managers. Maturity of the second-pillar pension plans is an essential prerequisite for the reduction of management commissions,” emphasizes Sanda Liepiņa, Chairman of the Board of the ALCB.
"To ensure more effective implementation of state-funded pension investment policies and the protection of interests of pension plan participants, the Ministry of Welfare is drawing up amendments to the Law on State Funded Pensions. The amendments aim to promote investment in the capital market, review pension fund investment limits, deadlines of plan changes, commission fees of managers, ensure the receipt of statistical data from life insurance companies, as well as make technical corrections to the law,” informs Jānis Reirs, The Minister of Welfare, in relation to the forthcoming changes in the field of state-funded pensions.
Data from ALCB’s review of pension funds show that second-pillar assets and pension contributions to third-pillar increased steadily in the first half of 2017. Over six months the value of accumulated funds in the second-pillar pension has increased by 251 million euros, reaching the 3 billion euro mark. Average stock per single member has also increased, reaching 2377 euros.
Third-pillar pension plan assets in the first half-year grew by 17.7 million euros, reaching 398 million euros.