LIETUVOS RESPUBLIKOS

LIETUVOS RESPUBLIKOS REPUBLIC OF LITHUANIA LAW ON THE ACCUMULATION OF PENSIONS 4 July 2003 No IX-1691 (As last amended on 5 June 2008 – No X-1588) Vilnius SECTION ONE GENERAL PROVISIONS Article

1. Purpose of the Law This Law shall lay down the conditions of as well as the procedure for the accumulation of a portion of the state social insurance contribution (hereinafter referred to as “the accumulation of pensions”) and organisation of the payment of pension benefits in the Republic of Lithuania. Article
2. Scope of Other Laws In respect of the regulation of relations of the accumulation of pensions and payment of pension benefits as specified by this Law, the Law on the Supplementary Voluntary Accumulation of Pensions, the Law on Insurance and other laws shall apply to the extent this Law does not specify otherwise. Article
3. Definitions
4. “Insured person” shall be interpreted as defined in the Law on State Social Insurance.
5. “Unit of account” shall be interpreted as defined in the Law on the Supplementary Voluntary Accumulation of Pensions.
6. “Participation in the accumulation of pensions” shall mean the accumulation of a portion of the state social insurance contribution as specified in the Law on Reform of the Pension System upon the conclusion and registration, in accordance with the procedure laid down by this Law, of an agreement on the accumulation of pensions.
7. “Participant” shall be interpreted as defined in the Law on Reform of the Pension System.
8. “Insurer” shall be interpreted as defined in the Law on State Social Insurance.
9. “Life assurance undertaking” (hereinafter referred to as an “insurance undertaking”) shall mean an undertaking established and operating in accordance with the procedure laid down by the Law on Companies and the Law on Insurance.
10. “Cumulative pension contribution” (hereinafter referred to as a “pension contribution”) shall be interpreted as defined in the Law on Reform of the Pension System.
11. “Collective investment undertaking” shall be interpreted as defined in the Law on Collective Investment Undertakings.
12. “Pension annuity” shall be interpreted as defined in the Law on Reform of the Pension System.
13. “Pension fund” shall mean the pensions assets belonging to the natural persons who participate in the accumulation of pensions under the Law on Reform of the Pension System by the right of joint ownership, where their management has been transferred to a pension accumulation company and they are invested according to the rules of that pension fund.
14. “Rules of a pension fund” shall be interpreted as defined in the Law on the Supplementary Voluntary Accumulation of Pensions.
15. “Pension fund management company” (hereinafter referred to as a “management company”) shall be interpreted as defined in the Law on the Supplementary Voluntary Accumulation of Pensions.
16. “Pension accumulation company” shall mean a management company or an insurance undertaking holding a licence or authorisation issued by a supervisory institution to engage in the accumulation of pensions in the territory of the Republic of Lithuania as specified by this Law.
17. “Pension accumulation agreement” shall be interpreted as defined in the Law on Reform of the Pension System.
18. “Pension account” shall be interpreted as defined in the Law on Reform of the Pension System.
19. “Pension spreadsheet” shall mean a computer programme designed to calculate the amounts of a portion of a participant’s future state social insurance pension and the annuity as provided for in Article 22 of this Law according to the economic indicators selected by the participant.
20. “Pension assets” shall be interpreted as defined in the Law on Reform of the Pension System.
21. “Transfer to another pension fund” shall mean the termination of a pension accumulation agreement and conclusion of a new pension accumulation agreement on the accumulation of pensions with another pension fund.
22. “Comparative index of a pension fund” shall mean an indicator selected by a pension accumulation company with the variable value whereof the return on investment of the investment portfolio of a pension fund is compared.
23. Supervisory authority: 1) an institution exercising supervision of the activity of insurance undertakings under the Law on Insurance (hereinafter referred to as the “insurance supervisory institution”); 2) the Securities Commission, which shall exercise supervision of management companies.
24. “Old-age retirement age” shall be interpreted as defined in the Law on State Social Insurance Pensions.
25. “Member State” shall mean a European Union Member State or a State of the European Economic Area (EEA).
26. “Accumulation of a portion of the state social insurance contribution” (hereinafter referred to as the “accumulation of pensions”) shall be interpreted as defined in the Law on Reform of the Pension System. SECTION TWO Participation in the accumulation of pensions Article
27. Participation in the Accumulation of Pensions
28. The right to become a pension accumulation participant in the accumulation of pensions as provided for by this Law and by the Law on Reform of the Pension System shall be granted to the persons covered, on a compulsory basis, by state social pension insurance to receive the basic and supplementary part of a pension, with the exception of the persons who have already attained the pensionable age.
29. Participation in the accumulation of pensions shall commence upon the conclusion of a pension accumulation agreement and registration thereof in the register of pension accumulation agreements (hereinafter referred to as the “register of agreements”). A pension accumulation company shall, within one month of the conclusion of a pension accumulation agreement, notify a participant of the registration of the pension accumulation agreement.
30. A pension accumulation company may not refuse to conclude a pension accumulation agreement with a person who has the right to participate in the accumulation of pensions under this Law.
31. When concluding a pension accumulation agreement, a pension accumulation company must familiarise a person intending to participate in the accumulation of pensions against his signature with a comparative analysis of the investment risk of all the pension funds managed by it.
32. When concluding a pension accumulation agreement, a pension accumulation company must inform a person for whom less than 7 years are left until the pensionable age of a possibility to accumulate a pension with a conservative investment pension fund. In such a case, a pension accumulation agreement may be concluded with a fund other than a conservative investment pension fund only if a person states in writing that he is familiarised with comparison of investment risk of all pension funds managed by a pension accumulation company and refuses to conclude a pension accumulation agreement with the conservative investment pension fund.
33. A pension accumulation company must open a pension account for every participant who has concluded with it a pension accumulation agreement. A participant may accumulate pension contributions at the same time only with one pension fund.
34. Pension accumulation agreements shall be registered in the register of agreements by the State Social Insurance Fund (hereinafter referred to as “SSFI”) Board under the Ministry of Social Security and Labour (hereinafter referred to as the “SSFI Board”). The regulations of the register of agreements shall be approved by the Government or an institution authorised by it. Where a pension accumulation company refuses to submit or to accept the data necessary for the registration of pension accumulation agreements and/or for the transfer of contributions according to the approved conditions of submission of data, the transfer of pension contributions to the pension funds managed by the said pension accumulation company shall be suspended until the submission of the data and/or renewal of acceptance thereof according to these conditions of submission of the data. The duty of payment of the late payment interest specified in Article 30 of this Law shall be borne by a pension accumulation company which fails to meet requirements. Upon the renewal of transfer of contributions, the contributions shall be transferred in accordance with the procedure laid down in Article 10 of this Law. Pension accumulation companies shall be responsible for the correctness of the data submitted to the SSIF Board.
35. In administering the register of agreements and recording therein pension accumulation agreements and termination thereof, the SSIF Board must ensure the continuity of participation of every participant in the accumulation of pensions.
36. Participation in the accumulation of pensions shall cease in the following cases: 1) after a participant attains old-age retirement age, and the entire pension benefit is paid to him under a benefit payment agreement; 2) in the event of a participant’s decease; 3) after a participant terminates a pension accumulation agreement in accordance with the procedure laid down in Article 6 of this Law; 4) after a pension accumulation agreement is declared null and void by a court’s decision. Article
37. Rights of a Pension Fund Participant
38. A pension fund participant shall have the following rights: 1) to terminate, in accordance with the procedure laid down by this Law, a pension accumulation agreement with a pension accumulation company and to conclude a pension accumulation agreement with another pension accumulation company, with the exception of the cases specified by this Law; 2) to terminate a pension accumulation agreement at his own initiative in accordance with the procedure laid down in Article 6 of this Law; 3) to obtain from a pension accumulation company information about the condition of his pension account, the investment strategy of funds and the investment return received under the strategy, the auditor’s report about the financial activity of the pension accumulation company as well as other information specified by this Law; 4) to receive the pension benefits specified by this Law taking account of the amount of the pension assets accumulated on his behalf; 5) to postpone, in accordance with the procedure laid down by this Law, the commencement of payment of the pension benefit; 6) to bequeath his share of the pension assets; 7) to enjoy other rights provided for by law, the pension fund rules and the pension accumulation agreement.
39. A participant shall have the rights specified in paragraph 1 of this Article also where no pension contributions are paid on his behalf. Article
40. Pension Accumulation Agreement
41. The parties of a pension accumulation agreement shall be a participant and a pension accumulation company. A pension accumulation agreement may not be concluded for the benefit of a participant with his employer or other third parties.
42. A pension accumulation agreement concluded for the first time shall enter into force in the accordance with the procedure laid down by the Law on Reform of the Pension System. Where a person transfers to another pension accumulation company, newly concluded pension accumulation agreements shall enter into force in accordance with the procedure laid down in Article 8 of this Law. A participant may transfer to a pension fund managed by another pension accumulation company only upon termination, in accordance with the procedure laid down by this Law, of a concluded pension accumulation agreement. Where a person transfers to another pension fund managed by the same pension accumulation company, newly concluded pension accumulation agreements shall enter into force in accordance with the procedure laid down in Article 7 of this Law.
43. Where several pension accumulation agreements have been concluded on behalf of the same person, the agreement which the SSIF Board receives and registers first shall be valid.
44. A pension accumulation agreement shall concluded in writing. Pension accumulation agreements must be bear a signature of the head of a pension accumulation company or another person representing the company and a stamp of the company or facsimiles thereof. The parties of a pension accumulation agreement may not, in this agreement, lay down such conditions of a pension accumulation agreement as would prejudice the situation of a participant compared with the one specified by this Law and by other laws of the Republic of Lithuania. The provisions of an agreement which do not meet the requirements set forth by this Law or related legal acts shall be deemed null and void.
45. Standard terms and conditions of a pension accumulation agreement shall be approved by supervision institutions by a general legal act. A pension accumulation company must submit to the supervisory institution a draft of the sample pension accumulation agreement used by it and amendment thereto.
46. The rules of a pension fund as approved by a supervisory institution shall constitute a part of a pension accumulation agreement.
47. A pension accumulation company may not terminate a pension accumulation agreement without consent of a participant, with the exception of the cases specified by this Law.
48. Upon the conclusion of a pension accumulation agreement, a pension accumulation company shall, subject to agreement of the procedure for submitting data with the SSIF Board, submit to the SSIF Board by electronic means not later than within 3 working days of the conclusion of the agreement the data required for the registration of the agreement. Pension accumulation agreements shall be registered in the register of agreements within 3 working days of the receipt of data by the SSIF Board. A notification of registration or non-registration thereof, with the reasons for the failure to register specified therein, shall be submitted to pension accumulation companies within the same time limit of 3 working days of the receipt of data by the SSIF Board. The procedure for adjusting the data submitted to the SSIF Board shall be laid down by the Government or an institution authorised by it. A pension accumulation company shall, within one month of the conclusion of a pension accumulation agreement, notify the persons whose pension accumulation agreements have not been registered and specify the reasons for the failure to register them.
49. A pension accumulation company wherewith a person intends to conclude a pension accumulation agreement shall have the right, in accordance with the procedure laid down by the SSIF Board, to inquire the SSIF Board about the eligibility of this person to become a participant in the accumulation of pensions as well as about the fact of conclusion of a pension accumulation agreement between this person and another pension accumulation company. Upon the receipt of such an inquiry, the SSIF Board shall reply in writing or, subject to agreement of the procedure for submitting information with the pension accumulation company, by electronic means not later than within 1 working day of the receipt of the inquiry.
50. Pension accumulation agreements and their termination shall be registered in the register of agreements as administered by the SSIF Board, and information thereon shall be kept for a period specified by laws.
51. A participant shall have the right to unilaterally terminate a pension accumulation agreement concluded for the first time upon written notice to a pension accumulation company within 30 calendar days of the conclusion of the agreement. Upon the receipt of a participant’s written notification of the termination of an agreement, a pension accumulation company must give notice thereof to the SSIF Board within 3 working days. A pension accumulation agreement shall be considered to have been terminated after the SSIF Board strikes it off from the register of agreements. A pension accumulation agreement shall considered concluded for the first time also where a participant has already exercised the right to terminate a pension accumulation agreement on the ground specified in this paragraph. Upon terminating a pension accumulation agreement in accordance with the procedure laid down in this paragraph, a person shall have the right to conclude a pension accumulation agreement with a pension accumulation company selected by him not earlier than on 1 January of the next year following the year of the termination of the pension accumulation agreement. Article
52. Transfer of a Participant to Another Pension Fund Managed by the Same Pension Accumulation Company
53. A participant shall have the right to transfer to another pension fund managed by the same pension accumulation company.
54. Where a person transfers to another pension fund managed by the same pension accumulation company, a new pension accumulation agreement shall be concluded. Upon the conclusion of a new pension accumulation agreement, a pension accumulation company shall, subject to agreement of the procedure for submitting information with the SSIF Board, give notice thereof and of the termination of the previous agreement to the SSIF Board by electronic means within 3 working days of the conclusion of the pension accumulation agreement. Where the first pension accumulation agreement has not entered into force, a newly concluded pension accumulation agreement shall enter into force on 1 January of the next year, and where the first pension accumulation agreement has entered into force, the newly concluded pension accumulation agreement shall enter into force upon registration thereof.
55. The transfer of a participant from one pension fund to another must proceed in compliance with the terms and conditions provided for in the rules of a pension fund from which he transfers and of a pension fund to which he transfers as laid down by a pension accumulation company. A participant shall have the right to transfer to another pension fund of the same pension accumulation company once per calendar year without making any deductions. Where a participant transfers to another pension fund of the same pension accumulation company more than once per calendar year, his transfer may be subject only to the deductions specified in paragraph 4 of Article 14 of this Law, where this has been provided for in the rules of the relevant pension fund.
56. When submitting the next notification indicated in paragraph 1 of Article 51 of the Law on Supplementary Voluntary Accumulation of Pensions, a pension accumulation company must inform a participant for whom less than 7 years are left until the pensionable age of a possibility to accumulate a pension with a conservative investment pension fund. The following information shall be submitted alongside with this information: 1) detailed information on the possible risk of participation in a fund of another type than a conservative investment pension fund and comparison of investment risk between a pension fund a participant wherein the person indicated in the first sentence of this paragraph is and the conservative investment pension fund; 2) information on the ways of obtaining rules of the conservative investment pension fund or access thereto. Article
57. Transfer of a Participant to a Pension Fund Managed by Another Pension Accumulation Company
58. A participant shall have the right, after the lapse of 3 years of the entry into force of the first pension accumulation agreement, to transfer to a pension fund managed by another pension accumulation company. The transfer shall not be restricted in the event of reorganisation, bankruptcy and liquidation of a pension accumulation company.
59. A participant who wishes to transfer to a pension fund managed by another pension accumulation company must conclude a new pension accumulation agreement with another pension accumulation company and submit, within 14 calendar days of the conclusion of a new agreement, the new agreement together with a request to terminate the previous pension accumulation agreement to a pension accumulation company with a pension fund whereof he accumulates pension contributions. A pension accumulation company with which the participant has concluded the new pension accumulation agreement shall, subject to agreement of the procedure for submitting information with the SSIF Board, submit to the SSIF Board by electronic means not later than within 3 working days of the conclusion of the agreement the data required for the registration of the agreement. Upon the receipt of the participant’s request to terminate a pension accumulation agreement and upon the establishment of the participant’s identity, the pension accumulation company must, within the time limit laid down for the notification of termination of a pension accumulation agreement in the rules of a pension fund from which the participant transfers, but not exceeding 14 calendar days, and subject to agreement of the procedure for submitting information with the SSIF Board, give notice thereof by electronic means to the SSIF Board.
60. Where a person transfers to a pension fund managed by another pension accumulation company, a newly concluded pension accumulation agreement shall enter into force of the registration of the agreement and notification of termination of the previous pension accumulation agreement in the register of participants. Upon making appropriate entries in the register of agreements and subject to agreement of the procedure for submitting information with the pension accumulation companies, the SSIF Board shall, within 3 working days, give notice thereof by electronic means to both pension accumulation companies and indicate to which (from which) pension fund the participant transfers. Where it has refused to register a new pension accumulation agreement or request to terminate the previous pension accumulation agreement, the SSIF Board shall, within 3 working days, give notice thereof to a pension accumulation company and specify the reason for the refusal.
61. A pension accumulation company a participant in a pension fund whereof wishes to transfer to a pension fund managed by another pension accumulation company, shareholders thereof and other persons shall be prohibited from directly or indirectly restricting this right of the participant.
62. The transfer of a participant from a pension fund managed by one pension accumulation company to a pension fund managed by another pension accumulation company must proceed in compliance with the terms and conditions provided for in the rules of the pension fund from which he transfers and of the pension fund to which he transfers. A participant shall have the right to transfer to a pension fund managed by another pension accumulation company once per calendar year covering only the expenses of the pension accumulation company from whose pension fund he transfers which are related to the person’s transfer to a pension fund managed by another pension accumulation company and indicated in paragraph 4 of Article 14 of this Law, where this has been provided for in the rules of the pension fund concerned.
63. Where a participant transfers to a pension fund of another pension accumulation company more than once per calendar year, his transfer may be subject to the deductions for the benefit of a pension accumulation company which transfers funds which are specified in paragraph 5 of Article 14 of this Law, where this has been provided for in the rules of the pension fund concerned. The deductions may be made from the monetary funds belonging to the participant and transferred to another pension fund or by other means specified in the rules of the pension fund.
64. Where a pension accumulation company intends to transfer the rights and duties related to a pension fund managed by it and arising from pension accumulation agreements to another pension accumulation company or where the pension fund is terminated due to the bankruptcy or liquidation of a pension accumulation company, participants in a pension fund managed by this pension accumulation company shall, within 3 months of the adoption of a relevant decision, have the right to transfer to another pension fund selected by them without the deductions specified in paragraphs 4 and 5 of Article
65. Where within the time limit indicated in this paragraph participants have not concluded pension accumulation agreements with another pension accumulation company, such participants as well as the funds belonging to them shall, in accordance with the procedure laid down by a general legal act of a supervisory institutions, be transferred to a pension fund managed by another pension accumulation company without making the deductions specified in paragraphs 4 and 5 of Article 14 of this Law.
66. Where a pension accumulation company transfers the rights and duties arising from pension accumulation agreements to another pension accumulation company not for the reasons related to the bankruptcy or liquidation of the pension accumulation company and where the new pension accumulation company takes over all the rights and duties (the situation of participants is not prejudiced), the right to transfer to a pension fund managed by another pension accumulation company as provided for in paragraph 7 of this Article shall not apply to the participants who do not have the right to transfer to another pension accumulation company due to the lapse of less than 3 years of the entry into force of the first pension accumulation agreement.
67. Subject to agreement of the procedure for submitting information with pension accumulation companies, the SSIF Board shall notify each pension accumulation company of bank cash account details of all pension funds managed by the pension accumulation companies. The pension accumulation company shall submit to the SSIF Board information on the requisites of bank accounts of the pension funds managed by it (name of a bank, name of a branch, bank code, account number) not later than within 1 working day of the opening of a bank account or change of account requisites.
68. A pension accumulation company from which a participant in a managed pension fund transfers shall, upon the receipt of a notification of the SSIF Board of the termination of a pension accumulation agreement with the pension accumulation company of that pension fund and entry into force of a new pension accumulation agreement, transfer within 3 working days the monetary funds of the participant to a cash account of a pension fund managed by the receiving pension accumulation company. A pension accumulation company to whose pension fund a participant transfers shall, after the monetary funds of the participant reach the account of this pension fund, give notice to the participant of the amount of the pension assets in his pension account. Article
69. Pension Assets
70. The pension assets making up a pension fund shall be the joint property of participants. A participant’s share in the joint property shall be determined according to the number of the units of account in his pension account.
71. A pension accumulation company shall manage, use and dispose of pension assets by holding the property in trust.
72. The pension assets making up each pension fund must be separated from other assets of a pension accumulation company and from the pension assets of other pension funds managed by the same pension accumulation company.
73. After a participant’s death, a part of pension assets belonging to him shall be inherited in accordance with the procedure laid down by laws. The inherited assets must be paid out to successors in cash, but not prior to the transfer of pension contributions for the calendar quarter when the participant’s death occurred. Article
74. Conditions of and Time Limits for the Payment of Pension Contributions
75. State social insurance contributions a constituent part whereof is the pension contribution shall be calculated and transferred to the budget of the SSIF in accordance with the procedure laid down by laws.
76. The SSIF Board shall, on the basis of the information available in the register of agreements administered by it about the pension accumulation agreements concluded by participants as well as the pension funds selected by them and the state social insurance contributions calculated for each participant, transfer pension contributions to the relevant pension funds managed by pension accumulation companies. The procedure for calculating and transferring pension contributions shall be laid down by the Government or an institution authorised by it.
77. Pension contributions shall be transferred within 60 calendar days of the day until which insurers must, in accordance with the procedure laid down by the Government, submit to agencies of the SSIF information about the amounts of insured income and social insurance contributions calculated for every insured person.
78. Pension contributions shall, prior to their transfer to the pension funds managed by pension accumulation companies, be held by the SSIF Board in trust in a commercial bank separately from other funds. These funds may be used only for a transfer to pension funds as pension contributions.
79. Pension contributions for the self-employed persons covered, on a compulsory basis, by state social pension insurance to receive the basic and supplementary part of a pension shall, in accordance with the procedure laid down by the Government or an institution authorised by it, be transferred to the pension funds managed by the pension accumulation companies selected by these persons according to the state social insurance contributions actually paid by these persons.
80. Upon the adjustment of a deceased participant’s insured income and state social insurance contributions for previous periods in accordance with the procedure laid down by legal acts, pension contributions for the previous periods shall not be recalculated. SECTION THREE GENERAL PROVISIONS OF THE ACTIVITY OF PENSION ACCUMULATION COMPANIES Article
81. Security Requirements Set for Pension Accumulation Companies
82. An insurance undertaking must: 1) continuously comply with solvency margin requirements; 2) form adequate technical provisions for the accumulation of pensions, where it, according to the rules of a pension fund, undertakes to guarantee participants a certain rate of profitability.
83. A management company must: 1) continuously comply with the capital adequacy requirements set by the supervisory institution; 2) form an adequate guarantee reserve, where it, according to the rules of a pension fund, undertakes to guarantee participants a certain rate of profitability.
84. An insurance undertaking shall calculate the solvency margin according to the methods of the calculation of the solvency margin established by a supervisory institution.
85. An insurance undertaking shall form technical provisions for the accumulation of pensions according to the methods of calculation of the amounts of insurance technical provisions as established by a supervisory institution. The investment of technical provisions for the accumulation of pensions shall be subject to the same requirements as the investment of insurance technical provisions.
86. The guarantee reserve must be formed, invested and used in accordance with the procedure laid down by a management company and agreed with a supervisory institution. The Commission shall have the right to instruct a company to amend and/or supplement the procedure for the formation, investing and use of the guarantees. The guarantee reserve shall be invested in a diversified investment portfolio, which shall be subject to the same requirements as pension assets set in Articles 46, 47 and 49 of the Law on the Supplementary Voluntary Accumulation of Pensions.
87. The security requirements set for an insurance undertaking and a management company in paragraphs 1 and 2 of this Article must be as similar as possible in respect of their essence and amounts. Article
88. Conservative Investment Pension Fund
89. A pension accumulation company must provide for persons a possibility to accumulate pension contributions with a conservative investment pension fund. Funds of this fund shall be invested only in: 1) the bonds issued or guaranteed by the governments and central banks of a Member State or of the member countries of the Organisation for Economic Co-operation and Development and by the European Central Bank and other forms of non-equity securities; 2) the shares or investment units of the collective investment undertakings whose funds shall be invested only in the investment objects indicated in subparagraph 1 of this paragraph; 3) the deposits with maturities not exceeding 12 months which can be repaid upon request and are held with the credit institutions having their registered office in the Republic of Lithuania, EU Member State or another state wherein prudential supervision is not less stringent than in the European Union; 4) investment derivatives used in accordance with the procedure laid down in paragraph 4 of Article 13 of this Law.
90. A pension accumulation company shall have the right to apply for the approval of rules of other pension funds only upon submission for approval, or upon approval, of the rules of the pension fund indicated in paragraph 1 of this Article. Article
91. Specific Features of the Investment of Pension Assets
92. Pension assets may consist only of the transferable securities and money market instruments which are specified by the Law on the Supplementary Voluntary Accumulation of Pensions and are admitted to trading on the markets regarded by the Law on Markets in Financial Instruments as regulated markets and operating in a Member State or which are admitted to trading on a regulated market situated in a member country of the Organisation for Economic Co-operation and Development and operating in accordance with established rules, recognised and open to the public, provided this market has been indicated in the rules of a pension fund. Pension assets may also consist of the transferable securities newly issued, where the conditions of emission provide for a commitment to admit these transferable securities to official trading on a regulated market not later than within one year of issuance thereof (where such a market is situated in a state non-EU Member State, it must be indicated in the rules of a pension fund).
93. Pension assets shall be invested in other assets in accordance with the procedure laid down by the Law on the Supplementary Voluntary Accumulation of Pensions.
94. Up to 20% of net assets of a pension fund may be invested in the investment units or shares of collective investment undertakings not fulfilling the conditions indicated in paragraph 1 of Article 49 of the Law on Supplementary Voluntary Accumulation of Pensions, provided such collective investment undertakings fulfil the following conditions: 1) supervision of the undertakings is exercised by appropriate supervisory institutions; 2) the Securities Commission co-operates with the appropriate supervisory institution of a foreign state on the basis of bilateral agreements, where this state is not an EU Member State or a member state of the Organisation for Economic Co-operation and Development.
95. Pension assets may be invested into derivative investment instruments solely for the purpose of risk management. A pension accumulation company shall have the right use investment derivatives only in the case when the rules of a pension fund indicate the investment derivatives which the pension accumulation company intends to use and the purposes of using them. Each derivative investment instrument must be based on a concrete investment transaction/investment position. Such a transaction and the investment derivative used for risk management thereof must be indicated in operating and financial condition reports of the pension accumulation company.
96. It shall be possible for the investment portfolio of a newly established pension fund not to meet the requirements set by Articles 47-49 of the Law on the Supplementary Voluntary Accumulation of Pensions for 6 months of the receipt of the first contribution to the pension fund. Article 13