Members of a closed voluntary pension fund can only be employees of an employer, or members of a union or association that established the fund. Employers contribute pension savings on behalf of their employees. Contributions of up to €66.36 per month or €796.34 per year per employee are tax-deductible for employers.

A credit institution entrusted by a pension company with the safekeeping of pension fund assets on a separate account. The custodian must act in the best interests of all pension fund members and treat available information as a business secret.

The fee paid by a member on their pension savings if they choose to switch their mandatory pension fund within three years. If the change is made in the first year, the fee is 0.8%, in the second year, it is 0.4%, and in the third year, it is 0.2%. After three years, there is no exit fee for changing the mandatory pension fund. Exit fees are regulated by law and are applied by all mandatory pension funds.

There are entry, exit, and management fees that a pension company may charge pension fund members. For each contribution made to a mandatory pension fund, the insured person pays an entry fee. A member of a mandatory pension fund who wishes to switch to another fund within three years must pay an exit fee. The custodian is entitled to a fee, calculated from the fund’s total assets, with a maximum percentage prescribed by the Croatian Financial Services Supervisory Agency (HANFA).

Mandatory pension insurance based on intergenerational solidarity. This means that all employed individuals contribute 15% of their gross salary as pension contributions to current pensioners.

The Croatian Financial Services Supervisory Agency, responsible for overseeing the operations of pension companies, pension funds, pension insurance companies, and the Central Registry of Insured Persons (REGOS).

The Croatian Pension Insurance Institute is responsible for administering pension insurance in the first pillar, based on intergenerational solidarity in Croatia.

This refers to the total pension savings in your personal account within a mandatory or voluntary pension fund. All money in your personal account is your private property, accumulated through contributions to mandatory or voluntary pension funds and the returns generated by the companies managing the pension funds. For voluntary pension savings, fund members also receive state incentives.

The second pension pillar is based on a system of individual capitalised savings in mandatory pension funds. There are four mandatory pension funds. Every employed citizen pays 5% of their gross salary into a fund of their choice, thus saving for their retirement. Mandatory pension funds are divided into three categories: A, B, and C, differing in membership restrictions, investment strategies, and investment limitations. Mandatory pension funds are managed by pension companies that generate returns for all fund members.

In open funds, anyone can save, regardless of age or employment status.

A public limited company or limited liability company that manages pension funds. The pension company decides on the investment strategy and invests members’ pension savings to generate returns on their behalf.

Every month, an employee contributes 20% of their gross salary to the first (15%) and second pension pillars (5%). Pension contributions are mandatory and governed by the Contributions Act.

A public limited company that pays out pensions from the second and third pillars of pension insurance.

One of the founda tions of social security for citizens, this insurance covers the risk of old age, disability, or death.

All members of a mandatory or voluntary pension fund have their own account, where their personal pension savings are accumulated and capitalised. Each member can check their account balance at any time and monitor the returns generated by the fund.

Each voluntary pension fund publishes a prospectus, which provides all the necessary information about the fund and the management company, enabling members to make an informed decision about which fund to choose for their pension savings.

The Central Registry of Insured Persons keeps records of contributions made for all insured persons in the second pillar and informs them about their account balance. Employees who do not choose their pension fund within a month of employment are assigned by REGOS to one of the four mandatory pension funds.

The profit or loss generated from the investment of the assets of all members in a mandatory or voluntary pension fund. The return can be positive or negative, depending on the rise or fall in the total value of the fund’s assets. The value of the fund’s assets depends on the investment strategy and movements in financial markets.

Mandatory individual capitalised savings for your pension. All employees contribute 5% of their gross monthly salary into a mandatory pension fund of their choice. Pension funds generate returns on this money. All contributions in the personal account are the personal property of the fund member and may only be used for a lifelong pension payout from the second pillar.

Every mandatory pension fund publishes a statute outlining the terms and rules of operation. Fund members can use the statute to understand the fundamental principles, investment strategy, and objectives.

Voluntary pension insurance. This means you can choose when, how much, and in which voluntary pension fund to save additionally for your retirement. The state incentivises such savings: at the end of the year, you receive 15% of the total amount you have contributed to a voluntary pension fund, up to a maximum of €99.54. The pension fund invests the money in capital markets and generates returns for all fund members.

Every pension fund member has a personal account expressed in units of account. The sum of the value of all units of account across members’ accounts constitutes the total value of the fund’s assets. The value of a fund’s unit of account changes daily, reflecting changes in the net asset value of the fund, which invests money in stocks, bonds, and other securities.

The third pension pillar is based on voluntary and flexible savings in voluntary pension funds. You can save as much and as often as you wish in one or more voluntary pension funds. The company managing the voluntary pension fund generates returns on your pension savings, and at the end of the year, you receive state incentives amounting to 15% of your contributions, up to a maximum of €99.54