FAQ - HRMOD

What does the Croatian Pension Insurance Company (HRMOD) do?

What types of mandatory pension schemes can I sign up with the HRMOD?

You may receive pension benefits from Pillar 2 after becoming entitled to a Pillar 1 pension paid by the Croatian Pension Insurance Institute (HZMO). The type of pension is determined by way of a HZMO decision, as follows:

• Old age or early age pension

• Disability pension

• Survivor's pension

Once you have learned about your pension type, you will opt for a payment scheme depending on the people in your life.

No spouse or life partner at the moment of retirement:

• Single, childless, no beneficiaries desired

In this case, opt for a Single Life Pension you will receive for life. This option does not allow you to designate a beneficiary who would, in the event of your early departure, receive a percentage of your pension benefits during a certain period.

• If you wish to designate beneficiaries

If you wish to designate beneficiaries who will, in the event of your early departure, receive your pension benefits during a certain period, opt for a Single Life Pension with a guarantee period (MO-S2). You will receive applicable pension benefits for life, and in the event of your early departure within the guarantee period, your designated beneficiaries will receive your pension benefits until the end of that period. You set the percentage of the pension benefits the designated beneficiaries will receive.

If you have a spouse or life partner, the payment scheme will depend on your partner's age and employment status.

At the moment of retirement, your spouse or life partner is older than 50:

• If your spouse or life partner is unemployed

Opt for a Joint Pension. In the event of your early departure, your spouse or life partner will continue to receive your pension benefits for life, in a percentage of your choice. If you wish to designate beneficiaries that will continue to receive your pension benefits upon your and your partner's early departure, opt for a Joint Pension with a guarantee period (MO-S4). You set the percentage of the pension benefits the designated beneficiaries will receive.

• If your spouse or life partner is employed

In this case, following your spouse or life partner's approval, you can opt for a Single Life Pension (MO-S1). If you wish to designate beneficiaries, opt for a Single Life Pension with a guarantee period (MO-S2). You can opt for a Joint Life Pension (MO-S3) without your partner's approval, and if you also wish to designate beneficiaries, opt for a Joint Life Pension with a guarantee period (MO-S4). You set the percentage of the pension benefits the designated beneficiaries will receive.

At the moment of retirement, your spouse or life partner is younger than 50:

• If your spouse or life partner is unemployed

In this case, opt for a Single Life Pension with a guarantee period (MO-S2), and designate your spouse or life partner as your pension beneficiary following your early retirement within the guarantee period.

• If your spouse or life partner is employed

In this case, following your spouse or life partner's approval, you can opt for a Single Life Pension (MO-S1) and Single Life Pension with a guarantee period (MO-S2).

What does the HRMOD selection process for the payment of pension benefits from Pillar 2 look like?

Which pension is more favourable – a combined pension from Pillars 1 and 2 or pension from Pillar 1 only?

What is the difference between the payment of pension benefits from Pillar 1 and Pillar 2?

Am I required to submit a statement on the pension type regardless of the option I choose?

If I opt for a Pillar 1 pension, what happens to my Pillar 2 savings?

Am I entitled to a 15% lump sum payment from Pillar 2?

What types of voluntary pension payments from Pillar 3 can I set up with HRMOD?

You can enter into a contract on voluntary pension fund benefits with HRMOD based on your voluntary pension fund savings, and receive a partial lump sum of up to 30%. You can also set up a pension based on a direct lump sum payment made to HRMOD.

HRMOD pays the following voluntary pension benefits:

• Life pension You become entitled to a life pension at the age of 60 at the earliest. As an exception, you can claim a life pension at the age of 50 if you became a member of a voluntary pension fund before 1 January 2019.

• Pojedinačna doživotna mirovina (MD5)

• This option allows you to receive pension benefits for life

• Iznos mjesečne mirovine ovisi o iznosu vaših ušteđenih sredstava i vašoj dobi

Single life pension with a guarantee period (MD-1)

• This option allows you to receive pension benefits for life. In the event of your early departure, your designated beneficiary will continue to receive 50% or 100% of your pension benefit during the guarantee period of your choice

• The guarantee period may last from 5 to 30 years

• If a designated beneficiary departs early during the guaranteed payment period, the total amount they are entitled to will be included in their inheritance

• Iznos vaše mirovine ovisi o iznosu ušteđenih sredstava, vašoj dobi, trajanju zajamčenog razdoblja te o postotku vaše mirovine koji bi primao imenovani korisnik

Joint life pension (MD-2)

• This option allows you to receive pension benefits for life

• You can set up a joint life pension only if your spouse/life partner has turned 50

• In the event of your early departure, your spouse or life partner will continue to receive monthly pension benefits

• Your pension benefit depends on the savings amount, the lump sum payment percentage and the age of both you and your partner

Zajednička doživotna mirovina sa zajamčenim razdobljem (MD6)

• This option allows you to receive pension benefits for life

• Možete ugovoriti samo ako je vaš bračni ili životni partner navršio 50 godina

• U slučaju vašeg prijevremenog odlaska, bračni ili životni partner nastavlja doživotno primati vašu mirovinu u određenom postotku (50% ili 100%)

• Ovaj oblik isplate mirovine omogućuje vam i imenovanje korisnika koji će u slučaju prijevremenog odlaska vas i vašeg partnera tijekom Ugovorom određenog (zajamčenog) razdoblja (od 5 do 30 godina) primati ugovoreni postotak vaše mirovine (50% ili 100%)

• Iznos mirovine ovisi o iznosu vaših ušteđenih sredstava, o dobi vas i vašeg partnera ,trajanju zajamčenog razdoblja te o postotku vaše mirovine koji bi se isplaćivao vašem bračnom ili životnom partneru, kao i imenovanom korisniku

• Temporary pension: You become entitled to an early life pension at the age of 55 at the earliest. As an exception, you can claim a life pension at the age of 50 if you became a member of a voluntary pension fund before 1 January 2019.

Temporary standard pension (MD-3)

• You can set up a 5 to 30-year payment period

• In the event of your early departure, your designated beneficiary or a legal successor will continue to receive pension benefits until the end of the payment period

• If a designated beneficiary departs early during the payment period, the total amount they are entitled to will be included in their inheritance

• Your pension benefit depends on the savings amount, the lump sum payment percentage, and the agreed upon payment period

Temporary single accelerated pension (MD-4)

• The pension payment period is set up to 5 years

• During the first three years, 30% of the total amount is paid, and in the fourth and fifth year 5% of the total pension benefit is paid in monthly instalments

• In the event of your early departure, your designated beneficiary or a legal successor will continue to receive pension benefits until the end of the payment period

• If a designated beneficiary departs early during the payment period, the total amount they are entitled to will be included in their inheritance

• Your pension benefit depends on the savings amount, and the lump sum payment percentage

Use our web calculator for a provisional pension calculation. For more information about our pension schemes, visit LINK , contact us on 01-2231-430 or at info@hrmod.hr.

How can I enter into a voluntary pension contract with HRMOD?

How will I know if I am entitled to a partial or a lump sum payment from Pillar 3?

Is there a difference between voluntary pension payments made by HRMOD and other pension insurance companies?

Pension payment by HRMOD	Pension payment by another pension insurance company
Pension payments are made on a life or temporary basis. Life: 1. Pojedinačna doživotna mirovina 2. Pojedinačna sa zajamčenim razdobljem (od 5 do 30 godina) 3. Zajednička doživotna mirovina. 4. Zajednička sa zajamčenim razdobljem. Temporary: 1. Pojedinačna standardna (u trajanju od 5 do 30 godina) 2. Single accelerated (lasting for 5 years)	Pension payment must be temporary (lasting for 5 years at least) and may in no way last for life
There are no legal limitations in relation to the savings amount paid by HRMOD	The savings amount available for payment by a pension insurance company may not exceed HRK 100,000
The pension payment amount is guaranteed and may not be lower than the contractually stipulated one	The pension is not guaranteed and its amount is subject to modifications due to a change in the share price

What prerequisites do I need to fulfil in order to claim a voluntary pension?

Submit a request to the relevant pension fund (MD) to transfer your savings amount to HRMOD

How can I be sure to receive regular pension payments?

How and where do you invest the funds intended for pension benefits?

Are pension benefits paid in gross or net amounts?

What does the pension benefit calculation depend on?

What fee types affecting the pension calculation does HRMOD apply?

HRMOD fees:

• A one-off contract entry fee

• An annual contract maintenance fee

The fee amount depends on the agreed upon pension type and arrangement.

Source of funds	One-off fee	Annual fee
Mandatory pension insurance	1.4% of the payment order amount received	0.15% of the payment order amount received
Voluntary pension insurance or a direct lump sum payment	1,4% od iznosa primljene doznake umanjene za djelomičnu jednokratnu isplatu / izravne jednokratne uplate	0.30% of the payment amount received less a partial lump sum payout/direct lump sum payments	Za pojedinačnu doživotnu mirovinu, pojedinačnu doživotnu mirovinu sa zajamčenim razdobljem, zajedničku doživotnu mirovinu i zajedničku doživotnu mirovinu sa zajamčenim razdobljem
		0,37% od iznosa primljene doznake umanjene za djelomičnu jednokratnu isplatu / izravne jednokratne uplate	For temporary standard pension
	1,5% od iznosa primljene doznake umanjene za djelomičnu jednokratnu isplatu / izravne jednokratne uplate	0.45% of the payment amount received less a partial lump sum payout/direct lump sum payments	For temporary accelerated pension

All applicable HRMOD fees have been included into your monthly pension benefit and no additional amount reductions apply in this respect.

Do you charge any additional fees when paying out pension benefits?

Can I get personal allowance on account of a Pillar 2 pension?

Are Pillar 2 pension benefits subject to adjustments?

Are Pillar 3 pension benefits subject to adjustments?

Do you charge an exit fee when transferring funds from Pillars 2 or 3 into a HRMOD account?

Who is eligible for a pension supplement?

What is the supplement amount for Pillar 1 pensions?

Is there a supplement for Pillar 2 pensions?