What is Act No. 42 / 1994 Coll.?

Act No. 42 / 1994 Coll., on supplementary pension insurance with a State contribution and on amendments to certain laws related to its implementation — Act on supplementary pension insurance with State contribution and on amendments to certain laws related to its implementation.

When it became Act No. 42 / 1994 Coll. effectiveness?

Act No. 42 / 1994 Coll. became effective 21.03.1994.

Is Act No. 42 / 1994 Coll. still valid?

Yes, Act No. 42 / 1994 Coll. is still valid and effective.

Act No. 42 / 1994 Coll. - Act on supplementary pension insurance w...

42

THE LAW

of 16 February 1994

on supplementary pension insurance with a State contribution and on amendments to certain laws relating to its implementation

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

PENSION INSURANCE

HLAVA PRVNÍ

BASIC PROVISIONS

§ 1

(1) This Act provides for supplementary pension insurance with a State contribution (hereinafter referred to as "supplementary pension insurance ') for pension funds, the activity of pension funds and the state supervision of supplementary pension insurance and the amendments to certain laws related to the introduction of supplementary pension insurance.

(2) For the purposes of this Act, pension insurance means the collection of funds from supplementary pension insurance participants (hereinafter referred to as "the participant ') and from the State provided to the participants, the treatment of these funds and the payment of supplementary pension benefits.

(3) The supplementary pension schemes referred to in paragraph 2 may not be carried out by persons other than pension funds.

§ 2

A participant may be a natural person over 18 who enters into a written supplementary pension agreement with the pension fund (hereinafter referred to as the contract). Participation in supplementary pension schemes is voluntary.

§ 2a

In the supplementary pension scheme, discrimination against participants shall be prohibited, in particular for reasons of sex, race, colour, language, faith and religion, political or other thinking, national or social origin, membership of a national or ethnic minority, property, genus, health or age.

HLAVA DRUHÁ

PENSION FUND

§ 3

(1) The pension fund is a legal person based in the Czech Republic, which operates a supplementary pension insurance under this Act.

(2) The Pension Fund is a public limited company for which the provisions of the Commercial Code apply, (1) unless otherwise provided for in that Act.

(3) A bank which carries out the function of depositary for a pension fund (hereinafter referred to as "depositary") and neither the legal person in which the depositary has a direct or indirect share of the capital in excess of 10% may acquire shares in that pension fund. Pension fund shares may also not be acquired by a health insurance company. (1a) Persons acquiring pension fund shares contrary to the provisions of the first and second sentences shall not exercise the following shareholder rights:

(a) to participate and vote in the general meeting;

(b) request an extraordinary general meeting; and

(c) submit to the court an application for annulment of the order of the General Assembly.

(4) The company of the pension fund must bear the designation "pension fund '. Other persons may not use that designation in their business name or business name.

§ 4

(1) A pension fund cannot be established on the basis of a public offer of shares.

(2) The Pension Fund may issue only shares of the same nominal value in name.

(3) The Pension Fund may not issue shares on favourable terms to employees 1aa) and priority shares.

(4) The value of the share capital of the pension fund must be at least CZK 50 000 000. The capital must consist only of cash deposits which must be repaid before the application is made pursuant to § 5.

(5) An increase in capital cannot be made in cash. New shares cannot be offered to be subscribed on the basis of a public offer to subscribe.

(6) In order to transfer the shares of the pension fund to a range of more than 10% of the share capital of the pension fund, carried out in one or more operations to any person or more persons acting in agreement, 1b) and to offer shares to a range of more than 10% of the share capital of the pension fund to the selected candidate, prior approval of the Czech National Bank is required. A request for consent shall be made by the acquirer or subscriber. If, within 30 days of the date of receipt of the request for approval, the Czech National Bank does not agree to the transfer or subscription of new shares, they shall be approved. A shareholder who acquired shares in the manner specified in this paragraph without the approval of the Czech National Bank shall not exercise the shareholder rights referred to in § 3 (3) (a) to (c).

(7) The Czech National Bank shall not give its consent under paragraph 6 if the acquisition of that amount of pension fund shares would not comply with the requirement of credibility and security of supplementary pension insurance.

(8) Shares of pension funds which constitute shareholder participation in the pension fund cannot be used to hedge liabilities.

§ 5

(1) Authorisation is required for the establishment and operation of the pension fund. The Czech National Bank shall decide on the granting of the authorisation on the basis of a written request from the founders of the pension fund. The Czech National Bank will request the opinion of the Ministry of Labour and Social Affairs before taking a decision on the application for authorisation.

(2) The applicant shall indicate in the application for authorisation referred to in paragraph 1:

(a) the business firm and registered office of the pension fund;

(b) the amount of the capital of the pension fund;

(c) substantive and organisational assumptions for the activities of the pension fund;

(d) whether the conditions for eligibility to be a member of the Board of Directors and the Supervisory Board set out in § 7 (2) to (4) for the proposed persons are met;

(e) the depositary.

(3) The application for authorisation referred to in paragraph 1 must be accompanied by:

(a) instruments proving the formation of a public limited company, the repayment of all the capital and the origin of the capital;

(b) the statutes of the pension fund;

(c) a proposal for the Statute of the Pension Fund (hereinafter referred to as the Statute);

(d) the draft pension plan of the pension fund (the pension plan);

(e) documents proving the credibility of natural or legal persons who are the founders of the pension fund, if they cannot be requested by the Czech National Bank under a special law;

(f) documents proving the credibility of the proposed members of the board, the Supervisory Board of the Pension Fund and the Prosecutor, if they cannot be requested by the Czech National Bank under specific legislation, and their competence.

(4) The application referred to in paragraph 1 may be made only on a prescribed form to which the applicant shall accompany the documents referred to in paragraph 3 (a) to (d) and evidence of the credibility and competence referred to in paragraph 3 (e) and (f). The model of the form and its annexes shall be laid down in the implementing legislation.

(5) The Czech National Bank shall not grant authorisation under paragraph 1 if:

(a) the draft statute or pension plan does not comply with the requirements laid down by this law;

(b) the pension fund does not meet the conditions for the payment of the proposed supplementary pension benefits;

(c) the proposed members of the Board of Directors and the Supervisory Board of the Pension Fund are not eligible to be members of the Board of Directors and the Supervisory Board pursuant to § 7 (2) to (4);

(d) the founders do not comply with the requirement of credibility.

§ 6

(1) The Czech National Bank shall decide on the application for authorisation pursuant to Article 5 within 60 days of the date of receipt of the application or its completion.

(2) The authorisation referred to in Article 5 (1) shall include an approved statute and pension plan, the approval of persons proposed as members of the board and supervisory board of the pension fund and the approval of the depositary.

(3) The authorisation shall be granted for an indefinite period and may not be transferred to another person.

§ 7

(1) The Board of Pension Funds shall have at least five members; the supervisory board of the pension fund must have at least three members, the number of members of which must be divisible by three.

(2) Only a natural person older than 18 may be a member of the Board of Directors and a member of the Supervisory Board (hereinafter referred to as the "pension fund bodies") and a curator, who is eligible for legal action, be credible and competent in a professional capacity which is not a natural person referred to in paragraph 3 and has been approved in advance by the Czech National Bank. If the Czech National Bank does not, within 30 days of the date of receipt of the proposal for a new member of the pension fund body or of the curator, agree to the proposal, it shall be deemed to approve the proposal.

(3) The members of the pension fund authority may not:

(a) Members and Senators of Parliament and members of the Government, Supreme Audit Office and employees of the Czech National Bank;

(b) members of other pension fund bodies, insurance corporations (1c), banks, persons authorised to provide investment services, members of regulated market organisers and members of investment fundingbodies (3) and investment socies3a); This does not apply to members of the bodies of persons with whom the pension fund forms a group,

(c) employees of another pension fund, depositary, regulated market organiser, CSD (4) and persons with whom the securities dealer carries out his activities;

(d) persons whose authorisation has been withdrawn under the law governing the capital market business.

(4) The members of the Supervisory Board of the Pension Fund may not be employees of the Pension Fund.

(5) Members of pension fund bodies are required to fulfil their obligations in such a way as not to prejudice the interests of the participants. Members of these institutions and persons close to them (6) may not purchase real estate and movable property constituting the assets of the pension fund or sell movable property and property.

(6) Staff of the pension fund may not be natural persons referred to in paragraph 3. Paragraph 5 shall apply mutatis mutandis to pension fund staff.

(7) Members of the institutions and members of staff of the pension fund are required to maintain confidentiality regarding the facts which they have learned in the performance of their duties or employment, where appropriate in connection with them; the authorisation of the Czech National Bank in the exercise of supervision of the financial market and of the Ministry of Finance (hereinafter "the Ministry ') in the exercise of State supervision under § 45a is not affected. This obligation shall continue after the termination of their duties or employment with the pension fund. Under the conditions laid down in the specific legislation, persons listed in the first sentence for the purposes of civil proceedings, execution procedures under the enforcement rules, supervision on a consolidated basis, criminal proceedings, tax administration and in the performance of their duties against the competent authority under the law on certain measures against the legalisation of proceeds from crime and terrorist financing or under the law on the implementation of international sanctions shall be exempt from confidentiality.

(8) The application referred to in paragraph 2 may be made only on the prescribed form to which the applicant shall accompany documents certifying compliance with the conditions laid down in paragraph 2. The model of the form and its annexes shall be laid down in the implementing legislation.

§ 8

(1) For the performance of the depositary's function for the pension fund, there is also a special law governing the performance of that function for the investment company and the investment fund (7), unless otherwise provided for in this Act.

(2) The change of depositary must be approved by the Czech National Bank, otherwise it is invalid. If the Czech National Bank does not, within 30 days of the date of receipt of the application for a change of depositary, agree to the change of depositary, the amendment shall be approved.

(3) The Czech National Bank may decide to change the depositary of the Pension Fund if the Depositary infringes the obligations laid down by law or by the Depositary Agreement. The Depositary Agreement shall cease to exist on the date on which the decision by which the Czech National Bank decided to change the Depositary becomes legal. No later than one month after the date of termination of the depositary contract, the pension fund shall conclude a depositary agreement with another bank.

(4) The Pension Fund shall always establish separate current accounts or sub-accounts with its depositary for the current account for:

(a) receiving and returning contributions from participants to supplementary pension schemes (hereinafter referred to as "the contribution");

(b) the provision and reimbursement of State contributions to supplementary pension schemes (hereinafter referred to as the "State contribution");

(c) financing the activities of the pension fund;

(d) the location and storage of the pension fund.

(5) A current account with a bank other than a depositary may be set up by a pension fund upon notification to its depositary only as a condition for opening a deposit account. Once the deposit account has been set up, the pension fund shall transfer the balances in that current account to the deposit account or to the current account held with the depositary.

(6) When the depositary is changed, the pension fund may open a separate current account for receiving and returning contributions from participants to the bank with which the depositary contract has been terminated for a period of six months from the date of the termination of the contract.

(7) The depositary's statutory authority and its Supervisory Board may not consist of more than one third of the staff of the pension fund.

HLAVA TŘETÍ

STATUT AND PENSION PLAN

§ 9

(1) The pension fund must have a status and a pension plan. The arrangements for the adoption of the Statute and the Pension Plan and their amendments shall be laid down in the pension fund statutes.

(2) Amendments to the Statute must be approved by the Czech National Bank, otherwise they are invalid. If, within 30 days of the date of receipt of the amendment proposal, the Czech National Bank does not agree to the amendment, the amendment is approved.

(3) The changes to the pension plan must be approved by the Czech National Bank, otherwise they are invalid. If, within 60 days of the date of receipt of the amendment proposal, the Czech National Bank does not agree to the amendment, the amendment is approved. The Czech National Bank will not approve the amendment if the amendment does not meet the requirements of § 5 (5) (a) and (b). Before making a decision on the proposal to change the pension plan, the Czech National Bank will request the opinion of the Ministry of Labour and Social Affairs.

(4) The statute and pension plan must be accessible to everyone.

§ 10

The Statute shall include:

(a) the scope of the activities of the pension fund under Articles 12 (1) and 32;

(b) the focus and objectives of the investment policy of the pension fund, in particular the types of assets to be acquired from the funds of the pension fund;

(c) the principles of the management of the pension fund;

(d) the way in which profits are used;

(e) the firm and the depositary's registered office;

(f) the manner in which the reports on the management of the pension fund's assets and changes in the status and the information on where such reports can be received.

§ 11

(1) The pension plan must specify:

(a) the types of pensions and other supplementary pension benefits;

(b) the conditions for entitlement to and payment of supplementary pension benefits;

(c) the method of calculating the supplementary pension benefits;

(d) the reasons for the termination of supplementary pension insurance;

(e) the amount of the contributions;

(f) conditions for deferral or interruption of the payment of contributions and changes in the amount of contributions;

(g) rules and arrangements for the payment of contributions and the procedure for the non-payment and late or incorrect payment of contributions;

(h) the conditions for the taking-over of supplementary pension funds of another pension fund and the adjustment of claims on the basis of such take-over;

(i) the principles whereby participants, including pension beneficiaries, participate in the income of the pension fund's management.

(2) Each pension plan must adjust the conditions for entitlement to the old-age pension [Paragraph 21 (1) (a)] and one-off compensation. The pension plan may adjust the conditions for the establishment of the participants' rights more favourably than those laid down in this Act, unless that law excludes it.

(3) The pension plan shall be drawn up as a defined defined pension plan, in which the amount of the pension depends on the total of the contributions paid to the participant, the participant's share of the income of the pension fund and the age from which the pension is granted (hereinafter referred to as the "pension scheme ').

(4) If there is an invalidity pension, the amount of these pensions may also be determined in addition to the rules of the pension scheme by guaranteeing the agreed amount of the pension if the pension fund fulfils the conditions laid down for entitlement to the pension, or by other means ("the benefit pension scheme '); in this case, the pension plan shall include the criteria for the distribution of the income of the pension fund to the part to be taken into account in determining the amount of the pension under the contribution pension plan and the part to be taken into account in determining the amount of the pension under the benefit pension plan.

(5) If the pension scheme includes a pension scheme, the pension contributions shall not be higher than those for an old-age pension.

(6) The amount of pension and contributions is determined in the pension plan according to actuarial principles, taking into account the proceeds of the pension fund's management.

HLAVA ČTVRTÁ

INSURANCE IN PENSION AND PENSION

§ 12

(1) Pension supplementary insurance is created by a contract between a natural person who is eligible to be a participant (§ 2) and a pension fund on the date specified in the contract. The contract shall not contain misused clauses to the detriment of the participant. A participant may conclude only one contract with one pension fund; This does not apply in the case of a contract concluded under Paragraph 19 (3) (c).

(2) Contracts under this Act shall not be subject to the provisions of a special law governing the insurance contract. 8)

(3) Intermediate activities for the conclusion of a contract between a pension fund and a natural person who is eligible to be a participant (§ 2) may be carried out by a natural or legal person for a pension fund authorised to operate (§ 5 (1)).

(4) In the context of the conclusion, amendment or termination of the contract, the pension fund or intermediary shall act in a qualified, fair and fair manner and in the best interest of the interested party to conclude the contract (hereinafter referred to as the "candidates') or the participant.

(5) Pension fund or intermediary

(a) may not grant a candidate or employer, in accordance with Article 27 (5), a remuneration, remuneration or non-monetary advantage (hereinafter referred to as "incentive") which may lead to a breach of the obligation to act in a qualified, fair and fair manner and in the best interests of the candidate;

(b) in the case of the conclusion of a contract or its mediation, it shall treat the candidate with professional care, in particular not to disclose false, unsubstantiated, incomplete, inaccurate, unclear or ambiguous information, or to disclose the nature and characteristics of the service provided;

(c) inform interested parties in writing of the essential facts relating to the pension fund, their persons as intermediaries, the essential elements of the supplementary pension scheme, the fees charged to the participant, the amount of the brokerage commission and other related costs of the pension fund.

(6) An incentive shall also mean an unusual remuneration for the service provided or any unjustified advantage of a financial, material or non-material nature.

§ 13

Prior to the conclusion of the contract, the future participant must be informed of the status and pension plan.

§ 14

(1) The pension fund undertakes to grant supplementary pension benefits to a participant under the conditions and in the manner set out in the pension plan and this contract and the participant undertakes to pay contributions to the pension fund under the conditions, the amount and manner laid down in the pension plan and this contract.

(2) Part of the contract is a pension plan to which the contract refers and which is attached to it.

(3) The pension fund shall inform participants in writing of changes to the pension plan relating to claims and supplementary pension benefits.

(4) In the contract, the participant may designate, in the event of his or her death, a person who is entitled to the disposal [Paragraph 23 (1) (b)]; If more than one person is identified, the participant shall at the same time define the method of distribution of the disposal to each individual.

§ 15

The contract must always provide for an old-age pension.

§ 16

If there is a change in the pension plan referred to in the contract, the change in the pension plan shall only become part of the contract if the participant and the pension fund have agreed to change the contract.

§ 17

(1) The participant may terminate the supplementary pension insurance at any time in writing. The pension plan may provide for a period of notice; that period shall begin on the first day of the calendar month following receipt of the notice and shall not exceed two calendar months.

(2) The pension fund shall be obliged to confirm receipt in writing to the participant no later than 30 days after the date of receipt of the statement and to communicate the date of expiry of the supplementary pension.

(3) The participant shall notify the pension fund in writing of all the facts relevant to the duration of the supplementary pension scheme, as well as the change of those elements which are a condition for the fulfilment of the pension fund's information obligation under paragraphs 14 and 26.

§ 18

(1) The pension fund may only terminate the supplementary pension insurance in writing to the participant,

(a) who has not paid contributions for at least six calendar months or, where appropriate, for a longer period provided for in the pension plan, or who has failed to fulfil any other obligation arising from the pension plan with which the plan combines the possibility of termination if the participant has been notified in writing at least one month before the termination of the supplementary pension scheme;

(b) which, at the time of conclusion of the contract, has given false information affecting the entitlement to a State contribution or to supplementary pension benefits or which has withheld the facts relevant to the conclusion of the contract; or

(c) which does not fulfil the conditions of participation laid down by this law.

(2) Pension supplementary insurance may not be waived pursuant to paragraph 1 if the participant has fulfilled the condition for entitlement to a pension consisting of the payment of the allowance for the period fixed by the pension scheme or would have fulfilled that condition by the end of the period of notice laid down by the pension scheme.

§ 19

(1) The supplementary pension insurance of the participant expires on

(a) termination of the last pension,

(b) one-off compensation payments instead of the last pension;

(c) agreed in writing between the participant and the pension fund;

(d) to which the supplementary pension insurance has been terminated pursuant to Sections 17 and 18;

(e) the payment of the severance benefit of the pension fund, unless the pension fund's obligations have been assumed by another pension fund;

(f) the death of the participant.

(2) The supplementary pension insurance of a participant is interrupted on the date indicated by the participant in the notice of interruption of the supplementary pension, but first on the first day of the calendar month following receipt of the written notification to the pension fund. A participant may only interrupt supplementary pension insurance under the first sentence if:

(a) has paid supplementary pension contributions for a period of 36 calendar months; or

(b) pay contributions for 12 calendar months in the case of any further interruption of the supplementary pension scheme with the same pension fund.

If a participant interrupts the supplementary pension insurance, it shall be entitled to a share of the income of the pension fund for which it has interrupted the supplementary pension insurance during the period of the interruption.

(3) Another supplementary pension contract may be concluded if:

(a) the former supplementary pension scheme has ceased to exist as referred to in paragraph 1 (a) to (e);

(b) the pension provision previously incurred has been interrupted in accordance with paragraph 2; or

(c) a participant entitled to supplementary pension benefits pursuant to Article 20 (1) has applied for payment of the benefit; a further contract may be concluded not earlier than the first day of the calendar month following receipt of the written application for payment of the benefit to the pension fund.

HLAVA PÁTÁ

PENSION INSURANCE OBLIGATIONS

§ 20

(1) The following benefits are granted from supplementary pension schemes:

(a) a pension, which is the life-long periodic payment of the amount of money and, if it is a survivor's pension, the payment of the amount of money for the period laid down in the pension plan;

(b) one-off compensation;

(c) available.

(2) The supplementary pension benefits shall be paid by the pension fund within the time limits and in a manner specified by the pension plan or agreed with the pension beneficiary.

(3) The supplementary pension benefits are paid on application by the beneficiary.

§ 21

(1) The following pensions may be granted from supplementary pension schemes:

(a) old-age pensions where the entitlement to the age laid down in the pension plan is a condition;

(b) an invalidity pension where the entitlement to an invalidity pension is a condition for a third-degree invalidity pension;

(c) a pension if it is a condition of entitlement to the supplementary pension period provided for in the pension plan;

(d) survivor's pension if the entitlement to the death of the participant is a condition.

(2) The pension entitlement is subject to the payment of supplementary pension contributions for a certain period of time provided for in the pension plan (hereinafter referred to as "insured period '), which must be at least 36 calendar months and must not exceed 60 calendar months, and the period of 36 calendar months cannot be reduced in the pension plan. However, the condition for entitlement to an old-age pension is that the insured period is at least 60 calendar months, which cannot be reduced in the pension plan; the insured period shall not exceed 120 calendar months.

(3) The provisions of paragraph 2 do not apply to pension and invalidity pension provided for in the batch pension scheme; a condition for entitlement to a pension is that the insured period is at least 180 calendar months and that the insured period is at least 60 calendar months, and that the insured period cannot be reduced in the pension plan.

(4) The age fixed for entitlement to an old-age pension under paragraph 1 (a) must be the same for both women and men and must not be less than 60 years; the pension plan must not specify the lower age.

(5) The survivor's pension shall belong to the natural person designated by the participant in the contract; the participant may designate more than one person. If both the participant and the person designated in the contract die at the same time or in circumstances which prevent the finding of which of them died first, it shall be deemed, for the purpose of assessing the entitlement to the survivor's pension, that the participant has survived that person and the amount calculated in accordance with Article 23 (3) becomes the subject of the inheritance under the conditions laid down in Article 25.

(6) Old-age, invalidity and pension benefits are only for the participant.

(7) A participant or natural person designated in a contract which has been entitled to a supplementary pension benefit and who is not resident on the territory of the Czech Republic shall, at their request, be obliged to pay the benefit abroad within the limits set by the pension plan.

(8) A participant or a natural person designated in a contract which has been entitled to a supplementary pension benefit and who is not resident in the territory of a Member State of the European Union shall, at their request, be obliged to pay the benefit abroad within the limits set by the pension plan.

§ 22

(1) One-off compensation belongs to the participant under the conditions laid down in the pension plan instead of the pension.

(2) In the event of entitlement to one-off compensation and upon receipt of a written request for payment, the pension fund shall pay one-off compensation by the end of the calendar quarter following the month for which the participant's last contribution was paid. A participant who has been entitled to one-off compensation and who interrupted the supplementary pension insurance before applying for its payment shall be obliged to pay one-off compensation within three months of receipt of the written request for payment.

§ 23

(1) The fee is due

(a) to a participant who has paid contributions for at least 12 calendar months and whose supplementary pension insurance has ceased to exist by way of notice or agreement, unless the pension is paid to him, the supplementary pension insurance lasted for at least 12 calendar months and no transfer of funds to the supplementary pension scheme for another pension fund pursuant to § 24;

(b) natural persons designated in the contract, if the participant has died and no pension or one-off compensation has been paid and if no entitlement to the survivor's pension has been established or if all the natural persons designated in the contract have waived the right to the survivor's pension in writing.

(2) If both the participant and the person designated in the contract die at the same time or in circumstances preventing the finding of which of them died first, for the purposes of assessing whether the party has acquired a right of disposal, the participant shall be deemed to have survived that person and the amount calculated in accordance with paragraph 3 shall become the subject of the inheritance under the conditions of Paragraph 25.

(3) The amount of compensation is determined as the sum of the contributions paid by the participant and the share of the income of the pension fund corresponding to the amount of contributions paid by the participant. The amount of the State contribution shall be returned to the Ministry by the Pension Fund.

Citation	Act No. 42 / 1994 Coll., on supplementary pension insurance with a State contribution and on amendments to certain laws related to its implementation
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	21.03.1994
Effective from	21.03.1994
Effective until	-
Status	Valid

Act No. 42 / 1994 Coll.

Act on supplementary pension insurance with State contribution and on amendments to certain laws related to its implementation

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