Basic Information about the old-age pension scheme (2nd Pillar)
A Few Words about the Second Pillar
The 2nd pillar is a part of the pension system that allows you to make contributions to your future pension and helps you to be more financially secure during retirement. Some of your mandatory pension contributions are turned into a personal asset – you do not pay a single cent extra; a portion of your state pension contributions are transferred from the Social Security Agency to your personal pension account (hereafter “PPA”) in NN dôchodková správcovská spoločnosť, a.s. (hereafter “NN DSS”). In other words, you contribute to your personal pension savings from your gross salary. Your contributions are held within pension funds. NN DSS manages individual pension funds and aims to maximise their return. For more information on the 2nd pillar and how to manage your pension savings efficiently, see our website Starobné dôchodkové sporenie (website is only in Slovak language, but you can translate it on your web browser).
Some Information about NN DSS
NN dôchodková správcovská spoločnosť, a.s. is owned by NN Group, an international financial services provider which operates in 11 countries. NN Group has its roots in the Netherlands, where it was founded more than 175 years ago. It provides its rich experience in the fields of insurance, pension security and investment to approximately 20 million clients.
Since 2005, NN DSS has allowed its clients to save for their retirement through pension savings. It is a leading company in pension management and is well-known for its high-quality services and contributions to society.
At NN DSS, we have many years of experience in the management of pension funds. We strive to provide you with the best pension savings solution whilst we ensure the safety and security of your investments.
For more information on our activities in Slovakia see our website O nás (website is only in Slovak language, but you can translate it on your web browser) in section NN Slovensko.
Investment Strategy
NN DSS offers you the opportunity to follow one of two investment strategies – an own or default investment strategy.
The main aim of the default investment strategy (hereafter “DIS”) is to allow the saver to achieve the highest possible return, while ensuring the savings are protected from significant market fluctuations in the period before they expect to retire. All of this without the saver needing to actively change the distribution of their savings in the individual pension funds. This strategy combines savings in an index non-guaranteed pension fund and the bond guaranteed pension fund, according to the age of the saver.
If you are an NN DSS saver, DIS ensures that 100% of your assets are placed in the index non-guaranteed pension fund (Index Global – Indexový negarantovaný d.f. NN DSS), until you reach a pre-determined age. After you reach a pre-determined age, currently 50, every year NN DSS will transfer 4 % of your assets to a bond guaranteed pension fund (Solid – Dlhopisový garantovaný d.f. NN DSS), and will allocate your ongoing contributions at the same percentage.
For more information on the non-guaranteed pension fund Index Global - Indexový negarantovaný d.f. NN DSS or guaranteed pension fund Solid - Dlhopisový garantovaný d.f. NN DSS, see Statutes and Key Information Document published on our website in section Dokumenty k dôchodkovým fondom (website is only in Slovak language, but you can translate it on your web browser). The relationship between savers and NN DSS is governed by our General Terms and Conditions - Všeobecné obchodné podmienky(website is only in Slovak language, but you can translate it on your web browser).
You may leave and enter the DIS at any time. If you wish to leave the DIS in the future, you only need submit a request for a change in savings arrangements (change of investment strategy, change of asset distribution, change of contribution allocation, reduction of the percentage of net asset value).
According to the law, as a saver you are entitled to request that the minimum percentage of the net value of your assets in the bond guaranteed pension fund is reduced by a half. If you make this request you will automatically cease to be a saver within the DIS, if you had been in the DIS prior to making such a request.
Additional information on DIS see on website Predvolená investičná stratégia (website is only in Slovak language, but you can translate it on your web browser).
You may choose one pension fund, or a combination of pension funds. The sum of the contribution distribution percentages must equal 100 % and the sum of the asset distribution percentages must equal 100 %. NN DSS gives you the choice of the following pension funds (all funds websites are only in Slovak language, but you can translate it on your web browser):
- Solid - Dlhopisový garantovaný d.f.
- Harmónia - Zmiešaný negarantovaný d.f.
- Dynamika - Akciový negarantovaný d.f.
- Rešpekt - Akciový negarantovaný ESG d.f.
- Index Global - Indexový negarantovaný d.f.
You may change your investment strategy at any time, you only need to send Request for Change in Investment Strategy - Žiadosť o zmenu investičnej stratégie (document is only in Slovak language). This can also be done online by signing up to the client portal WebKlient (website is only in Slovak language, but you can translate it on your web browser).
Voluntary Contributions
In addition to your mandatory contributions, you can make voluntary contributions to your PPA. Neither the payment frequency, nor the amount of voluntary contributions are pre-determined. Information on the payment of voluntary contributions is available on our website about pension savings Starobné dôchodkové sporenie (website is only in Slovak language, but you can translate it on your web browser).
Individual Guarantee
If you request a pension from the 2nd pillar, NN DSS is required to check whether the current value of assets in the guaranteed fund corresponds to, at least, the sum of contributions, sanctions and transfers credited to this pension fund. If the current value of assets is lower than the sum of contributions, sanctions and transfers, NN DSS must pay the difference from its own assets when it pays a pension from the 2nd pillar. More information is available on website Zmeny v II. pilieri (website is only in Slovak language, but you can translate it on your web browser).
Authorized Person
In your contract it is possible to specify an authorized person who will receive the financial assets held in your PPA in the case of your death. If no authorized person is appointed then your financial assets will be subject to inheritance proceedings. If you wish to add or remove the authorized person specified in your contract, you only need to submit a Request for a Change/Removal of an Authorized Person - Žiadosť o zmenu/zrušenie oprávnených osôb (document is only in Slovak language).
All above mentioned changes may also be carried out online by signing up to the client portal WebKlient (website is only in Slovak language, but you can translate it on your web browser).