Act No. 376 / 2015 Coll.
Pension saving termination law
Valid
Law
Effective from 01.01.2016
376
THE LAW
of 10 December 2015
on the termination of pension savings
Parliament has decided on this law of the Czech Republic:
TERMINATION OF PENSION
Subject matter
This Act regulates the termination of the pension savings scheme pursuant to Act No. 426 / 2011 Coll., on Pension Savings, as amended, ("the Pension Savings Act ') and the related obligations of the Pension Society, the Pension Fund Depository, the Pension Savings Insurance Managers (" the Insurance Managers'), the rights and obligations of the Pension Savings Participant ("the Participant ') and the exercise of supervision.
Relation to the Pension Savings Act
(1) The termination of the pension savings scheme shall be carried out in accordance with the Pension Savings Act, unless otherwise provided for in that Act.
(2) A pension savings contract and a pension insurance contract cannot be registered in the Central Register of Contracts.
(3) The pension company is not obliged to update the information provided for in the Pension Fund Statute relating to the obligations imposed by this Act.
Entitlements of participants
(1) A participant is entitled to the payment of the funds of a participant
(a) by transferring to his account with the person authorised to provide payment services or by delivery through a postal voucher; or
(b) by transferring to its supplementary pension savings under the Act governing supplementary pension savings, or by supplementary pension insurance with a State contribution under the Act governing supplementary pension insurance with a State contribution.
(2) By 30 September 2016, the pension company participant shall communicate in writing its name, birth number or date of birth, if no birth number has been assigned, the method chosen for the payment of the participant's funds; and
(a) the account number of the person authorised to provide the payment services to which the participant's funds are to be transferred or the address to which the participant's funds are to be delivered via the postal voucher; or
(b) the account number intended for receiving supplementary pension savings contributions or supplementary pension insurance with a State contribution from the pension company with which the participant has concluded a supplementary pension savings contract or supplementary pension insurance, and the number of that contract.
(3) Where a supplementary pension savings contract or supplementary pension insurance contract with a State contribution is concluded with the same pension company, the notification referred to in paragraph 2 by which the participant has chosen the option referred to in paragraph 1 (b) may be sent in a manner agreed with the pension company.
(4) In the case of a transfer to an account abroad with a person authorised to provide payment services or delivery via a postal voucher, the pension company shall be entitled to reimbursement of the effectively incurred costs associated with it, at an amount which exceeds the cost of transferring to an account in the Czech Republic with a person authorised to provide payment services. These costs shall be reduced by the participant's disbursements under Paragraph 11 (2).
(5) In the event that a pension company is served before 1 October 2016 with a notice under Paragraph 15 (1) or a notice under Section 15 (5) of the Pension Savings Act, the notice shall take precedence over the notification of the participant under paragraph 2. If there is a call under Paragraph 15 (1) of the Pension Savings Act, the first sentence shall apply only to 60% of the participant's resources.
(6) A participant's claim on a pension company resulting from its participation in pension savings cannot be penalised by enforcement or execution.
Deaths of the participant in savings period
The pension company shall pay to the heir the funds of the participant corresponding to the inheritance interest, as determined by the court of succession having acquired legal authority, within 1 month of the date on which the heir requested it in writing.
Savings strategy
As from the date of entry into liquidation of pension funds, the savings strategy cannot be changed.
Notification to participants
(1) The pension company is obliged to notify the participant of the closure procedure by 31 March 2016.
(2) The notification referred to in paragraph 1 shall include in particular information on:
(a) the method and time limit for the payment of the tenderer's funds;
(b) the obligation of the participant to notify in writing the pension company of the choice of payment method and the account number of the person authorised to provide payment services, or the address, or of the pension company and the account number of the account intended to receive contributions to supplementary pension savings, or of the supplementary pension fund and the name, birth number or date of birth of the participant, if no birth number has been assigned;
(c) the time limit for sending the notification referred to in (b);
(d) the right of the pension company to pay the cost of transferring to an account abroad to a person authorised to provide payment services or to supply through a postal voucher;
(e) a change in the way pension funds are invested;
(f) the possibility of repayments of pension insurance premiums for the period of participation in pension savings;
(g) the transfer of the participant's funds to an account designated by the actuary and the ability of the participant to request that the participant's funds be paid.
(3) The pension company shall also publish the information referred to in paragraph 2 on its website by 31 March 2016.
Pension savings account
(1) The pension savings account for the calendar year 2015 must be sent free of charge to the participant by 31 March 2016 at the latest.
(2) The pension savings account for the calendar year 2016 shall be sent free of charge to the participant only if the data differ from the information contained in the statement sent pursuant to Paragraph 11 (3).
Investment of pension funds
(1) When investing the funds of participants in pension funds, the pension company progresses in such a way that, at the latest by the date of entry into liquidation of the pension funds, the participants' funds are invested only in deposits with a regulated bank under the Pension Savings Act.
(2) Deposits of one regulated bank can reach a maximum of 35% of the value of the assets in pension funds.
(3) To the extent that the obligations referred to in paragraphs 1 and 2 are fulfilled, the investment arrangements provided for in the pension fund statute for a pension company shall not be binding.
Remuneration of the pension company
(1) The costs of the pension company related to the negotiations under this Act are borne by the payment of the pension company under the Pension Savings Act.
(2) As from the date of entry into liquidation of pension funds, the remuneration for the management of pension funds assets may not exceed 0,3% of the fund's equity capital under the Pension Savings Act.
Disposal of pension funds
(1) The authorisation to establish pension funds expires on 30 June 2016. The prohibition of authorisation to create pension funds shall abolish the pension fund and enter into liquidation.
(2) The pension fund ceases to be paid by all the participants' funds pursuant to Article 11 (1) and (4).
Payment of funds by participants
(1) The pension company shall pay the participant's funds in accordance with the notification referred to in Article 3 (2) not earlier than 15 October 2016. The payment of the participants' funds shall be terminated by 31 December 2016.
(2) At the earliest one working day before the date of disbursement of the participant's funds, the pension company shall write off the pension unit's property sub-account and credit the participant's cash sub-account with a cash amount corresponding to the number of pension units written off multiplied by the actual value of the pension fund's pension unit.
(3) The pension company shall send the participant a statement of the pension savings free of charge, without undue delay after payment of the funds.
(4) In the event that the funds of a participant have not been paid within the period and in the manner referred to in paragraph 1, the pension company shall, without undue delay, pay the remaining funds of the participants to an account designated by the actuary and inform him of the portion of such funds to each participant.
(5) To the extent that the funds of a participant have been paid into an account designated by the actuarial administrator, the participant's entitlement to the funds of a participant against a pension company shall cease.
(6) The legal relationship under the pension savings contract shall cease to exist by the payment of all the funds of the participant referred to in paragraph 1 or 4.
Unsettled funds account
(1) The actuarial administrator shall transfer the funds to the participant into the account of the participant's outstanding funds.
(2) The account of the participant's outstanding funds is the participant's personal tax account.
(3) The management of funds in the account of outstanding funds shall be treated in accordance with the tax rules.
Pension fund depository
(1) The depositary of the Pension Fund checks that the pension company is handling the assets in the Pension Fund in accordance with this Act.
(2) The Pension Savings Act shall apply mutatis mutandis to the activities of the depositary in breach of this law by the Pension Savings Act.
Merger of pension funds
A pension company to which all pension funds of another pension company have been transferred shall not be required to apply for authorisation to merge pension funds.
Annual report
In the annual report for 2016, the pension company shall provide the final report on the liquidation process.
Storage of documents and records
The pension company shall keep the documents and records referred to in Section 31 of the Pension Savings Act for a period of 10 years from the date of expiry of the Pension Fund. This also applies to its legal successor and also to the person who has been withdrawn from the activity of the pension company.
SURVEILLANCE
Supervision of compliance with the obligations of the pension company and the depository of the pension fund under this law is carried out by the Czech National Bank. The Pension Savings Act shall apply mutatis mutandis when exercising supervision under this Act.
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Determination of premiums
(1) As from 1 October 2016, pension savings premiums cannot be established and premium supplements can be prescribed.
(2) As from 1 September 2016, neither a sound nor additional claim for pension savings insurance can be made.
Termination of arrears
(1) On 1 October 2016, the arrears for pension savings insurance will cease.
(2) Paragraph 1 shall not apply to insurance accessories.
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The participant may, for the period before 2016, pay the pension insurance contributions provided for by the Social Security Insurance Act and the contribution to the state employment policy if it has fulfilled the condition set out in the first sentence of Paragraph 23 (1). The pension insurance can only be paid for the entire period of participation in the pension savings before 2016.
(1) The supplementary pension insurance premiums provided for in Article 20 are:
(a) employees of 60% of the pension savings premiums paid by the pension savings payee;
(b) an employee who did not have a pension savings fund payer referred to in Article 2 of the Pension Savings Insurance Act and an employee who is obliged to pay pension savings premiums pursuant to Article 31 of the Pension Savings Insurance Act, 60% of the pension savings insurance premiums which the employee was obliged to pay to the pension savings manager;
(c) the self-employed 3% of the total of the assessment bases for pension insurance premiums and the contribution to the national employment policy for the calendar years in which at least part of the year was involved in pension savings, and at that time the self-employed activity from which the pension insurance premium was to be paid lasted;
(d) persons voluntarily involved in pension insurance 3% of the total of the assessment bases for pension insurance premiums for the calendar months in which the participation in the pension savings were maintained, of which the pension insurance premium was paid.
(2) The supplementary pension insurance premium fixed in accordance with paragraph 1 (a) shall be reduced by 3% of the staff member's assessment base for pension insurance, provided that the staff member has been deducted from his income settled by the employer during the period of participation in the pension savings, a pension insurance premium of 6,5% of the assessment base, and the excess of the pension insurance premium has not been reimbursed to the employer. The supplementary pension insurance premium shall be adjusted according to the first sentence only at the employee's request, supported by the employer's confirmation that the excess has not been reimbursed to the employer.
(3) For the purposes of this Act, an employee is a natural person who is liable for pension insurance premiums under Articles 3 (1) (b) and 25 of the Social Insurance and Employment Insurance Act. The amount of the pension supplement shall be rounded down to the whole crown.
(1) The supplementary pension insurance premium provided for in Article 21 may be paid by 29 December 2017 at the latest.
(2) Section 19 of the Social Security Insurance Act and the National Employment Policy contribution shall apply mutatis mutandis to the payment of the additional pension insurance premium, with the payment of the supplement to an account determined by the district social security administration.
(3) If the supplementary pension insurance premium is paid after the expiry of the period referred to in paragraph 1 or if it is paid at a lower rate within that period, the amount paid shall be deemed to have been overpaid. the amount paid above the correct amount of the supplement shall also be considered as overpayment. Article 17 of the Social Security Insurance Act and the contribution to the State Employment Policy shall apply mutatis mutandis to the repayment of the overpayment as a result of the fact that the supplement has been paid at a lower rate within the period referred to in paragraph 1, starting from 30 December 2017 at the earliest.
(1) A participant wishing to pay a supplementary pension insurance premium is obliged to request, by 30 June 2017, a notification of the amount of the supplement to the form issued by the Czech Social Security Administration. The request for notification of the amount of the supplement shall be deemed to have been made in time if, on the last day of that period, the postal consignment containing the application was submitted for transport. Applications made after that period shall not be taken into account.
(2) Within 90 days of the date of receipt of the participant's request, the district social security administration is required to inform him in writing of the amount of the supplement for the pension insurance and the time limit and method of payment of the supplement. for applications submitted before 1 January 2017, the date of receipt of the application shall be that date. This communication shall be delivered to its own hands.
(3) The information necessary for determining the amount of the supplementary pension insurance premium for the employee will be communicated to the county social security authority by its local income tax administrator no later than 45 days from the date of receipt of its application. Where the application referred to in paragraph 1 has been made by a participant who, at the time of taking part in the pension scheme, was an occupational soldier or in the service relationship of a member of the Security Corps, this information shall be communicated by the authorities referred to in Section 25 of the Social Security Insurance Act and the contribution to the State Employment Policy no later than 45 days after the date of receipt of the application.
(4) In the application referred to in paragraph 3, the district social security administration shall indicate the name of the participant who was the payer of the pension insurance scheme, the date of birth of the participant, the number of the participant's birth, or, if the participant is not assigned a birth number, the payer's own number allocated by the pension insurance manager, the residence of the participant, the identification of his employer and the indication of the taking up and termination of the employment period; the employer's identification details shall mean the name, registered office and identification number of the legal person, if assigned, and the natural person's name, birth number or date of birth, if the natural person is not assigned a birth number, and the address of the place of residence.
If the participant does not agree to the amount of the supplementary pension insurance premium communicated under Paragraph 23 (2), it may, within 30 days of the date of receipt of the notification, ask the district social security administration in writing to take a decision on the amount of the supplement; in that request, the participant shall state the reasons for its disagreement. This decision shall be issued by the district social security administration no later than 60 days after the date of receipt of the tenderer's request for a decision. The district social security administration shall be entitled to request the local income tax authorities and the authorities referred to in the last sentence of Article 23 (3) for the supporting documents for this Decision; the local competent income tax administrator and those authorities shall send these documents to the district social security administration without undue delay, no later than 30 days. The period referred to in Article 22 (1) shall be extended by the period for which the decision-making procedure referred to in the first sentence took place, the period for which the judicial review proceedings took place and the period for which the period referred to in the first sentence of Article 23 (2) was exceeded.
(1) The district social security administration is required to inform the participant in writing immediately when the supplementary pension insurance premium has been paid and to what extent and the consequences of the proper payment of the supplement.
(2) Paragraph 123e (2) and (3) of the Act on the organisation and implementation of social security shall apply mutatis mutandis to the submission of applications by a participant. Regional social security administrations may submit applications in electronic form in a way that allows remote access or otherwise agreed with the locally competent income tax administrator and the authorities referred to in Section 25 of the Social Security Insurance Act and the contribution to national employment policy; This also applies to the provision of data and supporting documents to district social security administrations.
(3) The administrator of the Central Register of Contracts is obliged to communicate to the Czech Social Security Administration, from his register, information on persons involved in pension savings to the extent necessary for the purpose of maintaining the register of insured persons, in a way that allows remote access or in another agreed way.
(4) If the participant in the pension savings was an occupational soldier or in the service relationship of a member of the Security Corps, he shall inform the district social security administration of the payment of the supplementary pension premium to the Ministry of Defence, the Ministry of Interior or the Ministry of Justice.
TRANSFERS
Transfers
(1) A pension company commits an infringement by:
(a) not notify the participant or disclose the facts referred to in Article 6;
(b) not send a pension savings statement pursuant to Article 7;
(c) fails to fulfil any of the obligations under Paragraph 8;
(d) when paying the costs under this Act or determining the amount of the remuneration for the management, it goes against Paragraph 9;
(e) not to pay the funds of the participants in accordance with Article 11 (1), (2) and (4);
(f) when disbursing funds to participants, they proceed in breach of Article 11 (2);
(g) does not send a statement of pension savings pursuant to Article 11 (3);
(h) when transferred to an account designated by the actuarial authority, it is in breach of Paragraph 11 (4);
(i) fails to fulfil an obligation under Paragraph 15; or
(j) it does not keep documents and records in accordance with Article 16.
(2) The depositary of the Pension Fund commits an offence by acting in breach of Paragraph 13.
(3) The legal successor of a pension company or of a person who has been withdrawn from the activity of a pension company shall commit an offence by not maintaining documents and records pursuant to § 16.
(4) A fine of up to 10 000 000 CZK may be imposed for the offence referred to in paragraphs 1 to 3.
Jurisdiction
The transfers under this law are discussed by the Czech National Bank.
PROVISIONS TRANSITIONAL AND REPEAL
Transitional provisions
(1) The legal relationship of a pension savings agreement registered in the Central Register of Contracts before the date of entry into force of this Act is governed by the provisions of this Act. The establishment of this legal relationship shall be assessed in accordance with existing legislation.
(2) For insurance obligations for pension savings insurance periods before the date of entry into force of this Act, as well as the rights and obligations related thereto, Act No. 397 / 2012 Coll., on pension savings insurance, as effective before 1 January 2016, shall apply.
(3) The specialised financial office shall comply with the obligations concerning the Central Register of Contracts pursuant to Act No. 426 / 2011 Coll., on Pension Savings, as effective from 1 January 2016, until 31 December 2026.
(4) Insurance policies for pension insurance registered in the Central Register of Contracts before 1 January 2016 shall be governed by Act No. 426 / 2011 Coll., on Pension Savings, as effective before 1 January 2016, unless otherwise agreed by the Contracting Parties. The contributions from this insurance contract shall be paid and increased in accordance with legislation effective before 1 January 2016.
(5) The obligations of the insurance undertaking under Sections 22 and 23 of Act No. 426 / 2011 Coll., on Pension Savings, as effective before 1 January 2016, are governed by Act No. 426 / 2011 Coll., as effective before 1 January 2016.
(6) Administrative procedures initiated pursuant to Act No. 426 / 2011 Coll., on Pension Savings, as effective before 1 January 2016, shall be completed in accordance with Act No. 426 / 2011 Coll., as effective before 1 January 2016.
(7) Administrative procedures initiated under Act No. 426 / 2011 Coll., on Pension Savings, as effective from 1 January 2016, shall be completed under Act No. 426 / 2011 Coll., as effective from 1 January 2016.
Repeal
The following shall be deleted:
1. Act No. 426 / 2011 Coll., on Pension Savings.
2. Act No. 397 / 2012 Coll., on Pension Savings Insurance.
3. Part of the third Act No. 399 / 2012 Coll., on the amendment of laws in connection with the adoption of the Act on Insurance against Pension Savings.
4. Part Five of Act No. 399 / 2012 Coll., on the amendment of laws in connection with the adoption of the Act on Pension Savings Insurance.
5. Part twenty-ninth Act No. 241 / 2013 Coll., on the amendment of certain laws in connection with the adoption of the Act on Investment Companies and Investment Funds and the adoption of a directly applicable European Union law governing the settlement of certain derivatives.
6. Part 11 of Senate Legislative measure 344 / 2013 Coll., on the amendment of tax laws in connection with the recdification of private law and on the amendment of certain laws.
7. Decree No. 423 / 2012 Coll., on the increase of pensions paid from the pension insurance contract.
8. Decree No. 40 / 2013 Coll., on the formalities for the offer of pension insurance.
EFFECTIVE
This Law shall enter into force on 1 January 2016, with the exception of Sections 29 (1), (3) and (5), which shall take effect on 1 January 2018.
Hamlet v. r.
Zeman v. r.
Sobotka v. r.
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Regulation Information
| Citation | Act No. 376 / 2015 Coll., on the Termination of Pension Savings |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.2015 |
|---|---|
| Effective from | 01.01.2016 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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