Voluntary pension fund - UBB Pension Insurance

Insurance in VPF

• A voluntary pension fund is a flexible form of investment tailored to your individual needs	Contributions can be personal, made by the person being insured, an employer or a third party.
• Tax benefits	If you take out additional insurance, you can benefit from tax deductions for the contributions made under the Personal Income Tax Act.
• Flexibility of payments	You can suspend payments at any time and then resume them without penalty or interest; There is no requirement for the amount and frequency of payments. It is entirely up to the insured person to decide whether they want to contribute: - monthly; - quarterly; - or choose to contribute the whole amount in one lump sum. You also have the option to withdraw the money you have accumulated so far from personal contributions at any time.
• Succession	The heirs of a deceased insured person may also receive the funds accumulated in the individual account in the form of a lump sum or deferred payment.

The custodian bank of Voluntary Pension Fund UBB is UniCredit Bulbank.

The value of a unit of the Voluntary Pension Fund UBB, valid for the last working day of each month, is announced on the third working day of the following month in the newspaper "Trud".

Results of funds management

The funds of the UBB Voluntary Pension Fund are invested with the care of a good trader and in compliance with the principles of quality, reliability, liquidity, profitability and diversification. In setting the objectives, UBB Pension Insurance Company EAD takes into account the average age of the insured persons and their risk tolerance as well as the current and future liquidity needs of the fund.

In managing the assets of the UBB Voluntary Pension Fund, two main objectives are set:

Long-term - preservation of purchasing power and real growth of the funds in the individual accounts of the insured persons in the fund. The criterion for the fulfilment of the objective is the achievement of profitability for a period of at least 10 years higher than the inflation rate calculated on the basis of the Consumer Price Index published by the National Statistical Institute;
Medium term - achieving a return above the average for the supplementary pension insurance market, calculated on the basis of information published by the FSC.

The Company seeks to mitigate the Fund's investment risk by maintaining a high level of portfolio diversification by asset class and selecting investment instruments and issuers to achieve the best possible expected return while minimizing the risk associated with individual securities of a given issuer or asset class.

The Company seeks to maintain sufficient liquidity on a daily basis to meet cash outflows associated with the Fund's investment activities as well as any upcoming payments to insured persons/retirees.

Average amount of accumulated funds per insured person in the Voluntary Pension Fund (as of 30.09.2023)

4 262.79 BGN

for VPF UBB

2 098.80 BGN

average for all VPF

Portfolio structure of UBB Voluntary Pension Fund (as of 31.12.2022)

Government and supranational bonds 55.04%
Corporate bonds 3.82%
Equity and mutual funds 32.56%
REIT's 2.70%
Deposits and Money-market 5.88%
Receivables 0.00%

Rights of insured persons

Those insured in the UBB Voluntary Pension Fund are entitled to:

Free information about the accumulated amount in the individual insurance account, the transferred insurance contributions, the realized return on the fund's investments, the fees and deductions collected by the company.
A statement of the individual insurance account for the previous calendar year, which is sent by email or post by 31 May each year.
In the event of the death of the insured person, the heirs named in the contract or the legal heirs (where no specific heirs are named in the contract) are entitled to information on the status of the account.
Accumulated amounts in the individual account or part of them may be transferred from one voluntary pension fund to another, but not more than once within a calendar year.
It is possible to withdraw the accumulated funds in the personal contribution account at any time.
The possibility of suspending payments and resuming them at any time by the insurer, without penalty or deduction.
Ability to change the specific terms of the contract at any time - contribution amount, successors, payment frequency.
Eligibility for more than one voluntary pension fund.
Tax benefit for personal contributions.

Tax benefits and other specific rights depending on the type of insurance

Insurance with personal contributions

In the case of supplementary voluntary pension insurance with personal contributions, individuals benefit from a tax relief of up to 10% of the annual tax base.
In the case of repayment of amounts formed from contributions that have benefited from tax relief, the same are subject to 10% final tax if the withdrawal is made before the pension entitlement is acquired.
Amounts from contributions for which tax relief has not been claimed are not subject to tax on clawback.
In the case of payments to heirs, the amounts received are subject to inheritance tax in accordance with the Local Taxes and Fees Act. Inheritance tax is not payable by the surviving spouse and lineal heirs without limitation.
Realised income from the investment of pension fund assets distributed to the individual accounts of insured persons is not subject to tax on payment, whether or not the insured person has acquired pension rights.

Employer insurance

Employer contributions of up to BGN 60 per month per employee are recognised as a business expense provided that at the time of remittance the employer does not owe any tax or social security payments. Employer contributions in excess of BGN 60 are recognised as an expense and the amount in excess of BGN 60 is subject to a 10% tax under the Corporate Income Tax Act.

Other rights

The contribution can be paid into the chosen pension fund by the employer.
Providers shall be entitled, on request, to information on the total amount of contributions and entry fees paid by them for the benefit of all persons insured by them.
Ability to withdraw accumulated funds from employer contributions. These can only be withdrawn on retirement or up to 5 years before.
The insured person may transfer the accumulated amounts from the employer, subject to the restrictions in the contract signed between the pension company and the employer. The restrictions do not apply if the contract between the employer and the pension company is terminated or if the insured person's contract with the employer is terminated. In the absence of restrictions in the contract between the pension company and the employer, the insured person shall be entitled to transfer his employer's contributions accumulated in his individual account, or part thereof, from one voluntary pension fund to another, but not more than once in any calendar year.

Insurance for the benefit of a third party

According to the Personal Income Tax Act, the insurer does not benefit from a tax deduction for the contributions made. The insured person does not owe tax on the repayment of the amounts contributed, both after becoming entitled to a personal old-age pension and on the repayment of funds before becoming entitled to such pension.

Other rights

Upon request, the insurer shall be entitled to information on the total amount of contributions and the initiation fee paid by him in favour of the insured person.
The insured person shall have the right to transfer the amounts accumulated in the individual account, or part thereof, from one voluntary pension fund to another, if the insurer has not restricted his right of transfer in the contract.
The insured person may exercise his right to transfer no more than once in any calendar year.
On becoming entitled to a pension, the insured person shall be entitled to a personal old-age pension, a personal invalidity pension, a lump sum or a deferred payment of the accumulated funds.
When becoming entitled to a pension, the insured person has the right to choose the type of payment - pension, lump sum or deferred payment.
The insured person shall have the right to withdraw the funds accumulated in the account before becoming entitled to a pension if the insurer has not restricted his right to withdraw in the contract.
The insured person shall have the right to designate the persons entitled to inherit the accumulated funds in the event of the insured person's death.
On the death of the insured person/retiree, the persons named in the contract shall be entitled to a survivor's pension, to a lump sum or to a deferred payment. If there are no persons named in the contract, the funds are inherited by the heirs at law.
The insurer has the right to suspend contributions and to resume them at any time without penalty or deduction.
The insurer may change the terms of the contract only with the consent of the insured person.
The insurer shall have the right to specify restrictions relating to the right to withdraw and/or transfer funds from the insured person.

Payments from the Fund

Funds accumulated from a person's personal contributions, or a portion thereof, may be received back at any time.
The amount accumulated from employer contributions may only be withdrawn on retirement or up to 5 years before the person's retirement age. The employer cannot withdraw it back.
In the case of a voluntary pension scheme for the benefit of a third party, the insured person may also withdraw funds before becoming entitled to a pension if the insurer has not restricted his or her clawback rights in the contract.

Pension payments

After acquiring the right to a pension for length of service and age, persons insured in the voluntary pension fund may receive back the funds accumulated from personal, employer's or other insurer's contributions, or part of them in the form of:

a personal old-age pension (equal monthly payments over a period determined by the person);

A personal fixed-term old-age pension shall be granted only if its monthly amount is not less than 15% of the amount of the minimum monthly wage for the country at the date of granting the pension. If the calculated monthly amount of the pension is less, the accumulated funds shall be paid in one lump sum or in instalments.

in instalments according to a deferred payment plan;
lump sum;
personal invalidity pension.

The personal invalidity pension is an amount payable monthly for permanent disability of 50% or more. It is granted only if its monthly amount is not less than 15% of the national minimum wage on the date the pension is granted. If the calculated monthly amount of the pension is less, the accumulated funds are paid in one lump sum or in instalments.

A person with a pension is entitled to change the period for receiving the pension, but not more often than once in a calendar year.

Other payments

On the death of the insured person (pensioner), the persons named in the insurance contract are entitled to a survivor's pension, a lump sum or a deferred payment in the proportions specified in the contract;

The survivor's pension shall be granted only if its monthly amount is not less than 15% of the national minimum wage at the date the pension is granted. If the calculated monthly amount of the pension is less, the accumulated funds shall be paid in one lump sum or in instalments.

If no specific beneficiaries are named in the insurance contract, the legal heirs are entitled to receive the funds.

The amounts accumulated in the individual account in the voluntary pension fund shall not be enforceable.

Pensions and other payments

Persons insured in the UBB Voluntary Pension Fund are entitled to a pension, as well as to a lump sum or deferred payment of funds.

Funds accumulated from personal contributions or from a third party may be withdrawn at any time. The exception is the amount accumulated from employer's contributions - it may be withdrawn only on retirement or up to 5 years before the person reaches the age for entitlement to a pension.

Persons insured in the UBB Voluntary Pension Fund with personal contributions and with employer contributions are entitled to a pension, either lump sum or deferred disbursement of the funds upon:

Acquisition of entitlement to a pension from the State Social Insurance;
Up to 5 years before the person reaches the age for entitlement to a pension;
In case of permanent loss of working capacity of 50% or more.

Pension amount

The amount and periodicity of contributions made, the return on the management of the funds, the period of insurance and the deductions made by the pension company have a major impact on the amount of the future pension.

Specially designed pension calculators* help you:

Calculate yourself the amount of pension you can receive from a voluntary pension fund.

Calculate how much you need to contribute to a voluntary pension fund to get the pension you want.

Calculate the amount of income tax you save on an annual basis if you are contributing to a voluntary pension fund or life insurance.

* Calculators are in Bulgarian.

Joining and change of participation in VPF

Signing VPF contract

If you want to be insured in the UBB Voluntary Pension Fund, you need to sign an "Individual contract for additional voluntary pension insurance". This can be done in the most convenient way for you:

visit one of the UBB Pension Insurance offices in the country, where you can fill in and submit all the necessary documents on the spot;
one of our insurance intermediaries can visit you at a time and place convenient for you to conclude a contract. To do this, you need to contact us on freephone 0800 11 464;
complete and send the documents signed with your electronic signature to the following email address: clients@ubb-pensions.bg.

Change of participation in VPF UBB

You can change your supplementary voluntary pension fund by taking one of the following steps:

Visit one of the UBB Pension Insurance offices in the country to fill in and submit all the necessary documents on the spot;
contact us on freephone 0800 11 464 to arrange a meeting with one of our pension insurance intermediaries who will come to you at a convenient time and place of your choice;
complete and send the documents signed with your electronic signature to the following email address: clients@ubb-pensions.bg. In order to make use of the latter option, you need to have a qualified electronic signature within the meaning of the Electronic Document and Electronic Certification Services Act.

Change of electronic participation

Here are the steps in case you have an electronic signature:

Familiarise yourself with the basic information on insured persons for the UBB Pension Fund of your choice:
Basic information for insured persons in the UBB Voluntary Pension Fund
Download and print the "Application for change of participation" and "Insurance contract" templates for the UBB Voluntary Pension Fund:
- Application for transfer of funds in the individual account from one to another Voluntary pension fund
- Individual contract for supplementary voluntary pension insurance when transferring funds accumulated from personal contributions from another pension fund
- Individual supplementary voluntary pension insurance contract for the transfer of funds accumulated from employer contributions from another pension fund
Fill in your details by hand on the application form, following the instructions for completion printed on the last page of the application form, and sign in the space provided for the insured person's signature.
Also fill in your details by hand on the insurance contract, signing in the space provided for the insured person's signature.
Scan the completed and signed application and insurance contract as separate files.
Sign the scanned files with your qualified electronic signature and email them to: clients@ubb-pensions.bg.

You will receive an electronic copy of the application and the insurance contract from us by the end of the same working day (or, if the application is sent after 5 p.m. or the day is a holiday, by the end of the first working day following the day of sending), which contains an incoming number and is signed with the electronic signature of UBB Pension Insurance. If the details entered on the application form and contract do not agree with the details on your electronic signature, the application will not be accepted.

Important:

In case your data in the information system of the pension fund where you are insured is not up-to-date - for example, due to a change of names, you need to attach scanned copies of the official documents certifying the change (e.g. marriage certificate, divorce decree, etc.).

Fees and deductions

For carrying out the activity of additional voluntary pension insurance UBB Pension Insurance collects fees and deductions according to the regulations approved by the Financial Supervision Commission (see Forms section).

Type and amount of fees and deductions in VPF UBB

Type of fee and maximum amount allowed by law	Amount of the fee for the UBB Voluntary Pension Fund
Introductory (one-off) fee	Supplementary voluntary pension insurance with personal contributions and in favour of a third party: BGN 10 for each individually insured person; The Company does not charge an introductory fee for opening an individual account in the UBB Voluntary Pension Fund for persons insured in the UBB Universal Pension Fund and/or the UBB Professional Pension Fund. No opening fee shall be charged for persons who have funds in their account under an existing individual contract or contract with an employer. The fee is also waived for persons who transfer from another Voluntary Pension Fund and conclude a contract for additional voluntary pension insurance. Supplementary voluntary pension insurance with personal contributions and in favour of a third party: BGN 8 - for each person insured under a contract with an employer providing up to and including 150 persons; BGN 5 - for each person insured under a contract with an employer providing insurance for 151 to 300 persons inclusive. BGN 2 - for each person insured under a contract with an employer providing insurance for more than 300 persons. The fee is also waived for persons who transfer from another Voluntary Pension Fund and conclude a contract for additional voluntary pension insurance. The Company does not charge an introductory fee when opening an individual account in the Voluntary Pension Fund for persons who are insured in the UBB Universal Pension Fund and/or the UBB Professional Pension Fund. No entry fee shall be charged for persons who have funds in their account under an existing individual contract or contract with an employer. The fee shall not be charged when transferring funds to an individual insurance account of a spouse, first-degree or second-degree relatives in the UBB Voluntary Pension Fund. The fee shall not be charged when opening an individual account in the UBB Voluntary Pension Fund in the case of transfer of funds from another voluntary pension fund managed by another pension insurance company. An initial fee shall also not be levied for the opening of an individual insurance account of persons who conclude an insurance contract with an obligation to make contributions to the UBB Voluntary Pension Fund and at the same time apply for the transfer of their funds from a voluntary pension fund managed by another pension insurance company.
Deduction from each instalment	Supplementary voluntary pension insurance with personal contributions and in favour of a third party: 4.25% - under an individual contract with a contribution up to BGN 40; 4.00% - under an individual contract with a contribution from BGN 40.01 to BGN 100; 3.75% - under an individual contract with a contribution from BGN 100.01 to BGN 1 000; 3.5% - under an individual contract with a contribution exceeding BGN 1 000; 3.25% - for each individual contribution, regardless of its amount, when the funds accumulated in the account exceed BGN 10 000. For contracts where the contribution is made in a lump sum, the deduction from that lump sum shall be: 4% if the amount of the lump sum contribution is up to BGN 1 000; 3.5% if the amount of the lump sum contribution is from BGN 1 000.01 to BGN 10 000; 3.25% if the amount of the lump sum contribution exceeds BGN 10 000. The deduction from each instalment shall be reduced by 0.50 percentage points for monthly instalments after the 48th instalment, and the deduction may not be less than 3 per cent of the monthly instalment. Supplementary voluntary pension insurance with employer contributions: 4.25% - by contract with the employer with a monthly contribution of up to BGN 60 for each insured person; 3.75% - under a contract with an employer with a monthly contribution exceeding 60 BGN for each insured person; 3.25% - under a contract with an employer with a monthly contribution exceeding 120 BGN for each insured person; For contracts where the contribution is made in a lump sum, the deduction from that lump sum shall be: 4% if the amount of the lump sum contribution is up to BGN 1 000; 3.5% if the amount of the lump sum contribution is from BGN 1 000.01 to BGN 10 000; 3.25% if the amount of the lump sum contribution exceeds BGN 10 000; 1.5% under a voluntary pension insurance contract with an employer where the number of insured persons is 2 000 or more. In the case of insurance with monthly contributions from an insurer with monthly receipts under a contract exceeding BGN 10 000, the deduction is 3%.
Investment fee	10% of the income earned from the investment of the funds of the VPF.
Transfer fee to another Voluntary Pension Fund	No fee
Fee for withdrawals from the individual account before becoming entitled to a pension, regardless of the amount	5 BGN
Fee for disbursement of funds upon pension entitlement	No fee
Fees for termination, suspension or resumption of contributions	No fee
Fees for obtaining account information	No fee

Forms

Forms for Voluntary Pension Fund

1522.72 kb / PDF

1048.59 kb / PDF

Disclaimer

The presentation of the products is not exhaustive as regards all their specific features and characteristics. Full information on the insurance in the voluntary pension fund and on the types of payments is contained in the Regulations on the organisation and activity of the UBB Voluntary Pension Fund.

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