Amendments to the Social Insurance Code introduce a new model for managing pension savings, more opportunities for personal choice, and additional requirements for pension insurance companies. They affect the funds that insured persons accumulate for an additional pension and are important for their future income after completing their working lives.

Federation of Transport Trade Unions presents the main changes based on the explanations prepared by CITUB and the clarifications of the Financial Supervision Commission. The goal is for workers to know their rights, deadlines, and the possible consequences of their choice.

What does the new model consist of?

From January 1, 2027, three sub-funds with different investment profiles are being introduced in universal pension funds: dynamic, balanced, and conservative.

Until now, the funds of all insured persons in a single universal pension fund were managed under a common investment policy. The new model allows for a different approach depending on age, time until retirement, and the willingness of the insured person to take on different investment risks.

The main differences between the sub-funds are:

• Dynamic sub-fund: allows investing up to 90% of assets in variable income financial instruments, such as shares. It implies greater fluctuations in the value of savings and the potential for higher returns in the long term.

• Balanced sub-fund: allows up to 55% of assets in variable income financial instruments and combines growth opportunities with more moderate risk-taking.

• Conservative sub-fund: allows up to 25% of assets in variable income financial instruments and is aimed at limiting risk as retirement age approaches.

The percentages indicated are maximum allowable limits, not mandatory investment levels. None of the profiles completely eliminates investment risk!

Until when and how can a choice be made?

From September 1 to November 30, 2026, those already insured in a universal pension fund can submit an application for choosing a sub-fund to the pension insurance company that manages their fund.

Before making a decision, the company must provide the necessary information and consultation. A questionnaire is also provided to assess the acceptable investment risk for the person.

The right of choice is limited for persons who, as of January 1, 2027, have reached an age that is three or fewer years below the retirement age under the general procedure of Art. 68, para. 1 of the Social Insurance Code. They must participate in a conservative sub-fund.

For workers in transport, it is important to distinguish between this age and the conditions for early retirement under the first and second categories of labor.

What happens if you do not submit an application?

Personal choice is a right, not an obligation. If no application is submitted within the specified period, the pension company will perform an automatic allocation based on the age of the insured person as of January 1, 2027:

• Persons under 50 are allocated to a dynamic sub-fund.

• Persons who have reached 50 years of age, who have more than three years remaining until retirement age under the general procedure, are allocated to a balanced sub-fund.

• Persons with three or fewer years remaining until this age are allocated to a conservative sub-fund.

The lack of an application does not lead to the loss of accumulated funds. It means that the allocation procedure provided by law will be applied.

What changes for voluntary pension funds?

For voluntary pension funds, the creation of sub-funds is at the discretion of the respective company. If such are created, they must include a balanced sub-fund.

Here, the deadline for choosing is different from that for universal pension funds. The insured have three months after being notified of the corresponding changes in the rules of the voluntary fund. Until a choice is made, or in the absence of one, the funds are managed in a balanced sub-fund.

Fees, control, and protection of savings

The changes provide for a gradual reduction of the maximum deduction from social insurance contributions in supplementary compulsory pension insurance. It is planned to decrease from 3.75% in 2026 to 2.10% from 2036.

Higher requirements are also being introduced for the capital, reserves, and management of pension insurance companies, as well as training requirements for insurance intermediaries.

These measures aim to improve the protection of the insured and the control over the management of their funds. However, they do not guarantee positive returns or a predetermined amount of the future pension.

How to prepare for your choice?

Before submitting an application, it is important to check in which pension fund you are insured and to familiarize yourself with the official information of the company.

Request a clear explanation of the investment risk, fees, and conditions for participation in the different sub-funds. Assess how much time remains until your retirement and how you would tolerate a temporary drop in the value of accumulated funds.

Do not base your decision solely on advertising or on high returns for a short past period. Past performance does not guarantee future results. The choice of a pension company and the choice of a sub-fund are different decisions and should be considered separately.

For FTTU, it is paramount that transport workers know their rights and can make informed decisions about their future income. In case of unclear information or suspicion of a violation, seek assistance from your trade union organization. Signals can be submitted in writing to the pension insurance company and to the Financial Supervision Commission.

This material is for informational purposes only and does not constitute individual investment advice.