From February 2022, the Social Insurance Board will start making second pillar pension insurance payments to people who had entered into a life-long pension contract with branches of ERGO Life Insurance SE and SEB Life and Pension Baltic SE.
In January of next year, the second pillar life-long pension contracts of around a thousand people expire with the branches of Ergo Life Insurance SE and SEB Life and Pension Baltic SE.
The last pension insurance payment by these associations is made in January of the following year and the insurance contracts are then deemed to be terminated. From February of next year, the Social Insurance Board will continue making pension payments to those who wished to continue with a life-long pension contract and did not change their insurance provider.
The change means that from February 2022, the Social Insurance Board will make the payments instead of insurance associations. The amount of the pension contribution does not change for the individual.
The Social Insurance Board will start making pension payments once a month, on the 12th day. If the payment date falls on a holiday, the payment will be made on the working day preceding the holiday.
People who used to receive their pension contributions from insurance associations on a quarterly basis, or four times a year, will now receive pension contributions from the Social Insurance Board on a monthly basis. The Social Insurance Board converts payments to these people into monthly payments, for example:
Tõnu used to receive pension payments four times a year and his quarterly payment amounted to € 150 . Tõnu's last payment was received in December 2021 and his next payment was due in March 2022.
In February 2022, the Social Insurance Board will convert Tõnu's quarterly payment of € 150 into a monthly payment, which means that Tõnu will receive € 50 every month.
In February 2022, the Social Insurance Board will pay Tõnu his pension insurance contributions for January 2022 and February 2022, i.e., a total of € 100. From March 2022, Tõnu will continue to receive monthly payments of € 50 per month.
If the pension contract was concluded with a guarantee period and the policyholder dies, the outstanding amount will continue to be paid as a lump sum to the beneficiary designated by the
policyholder. Beneficiaries can also be changed and/or added by the policyholder in the future. To do this, you must contact the Social Insurance Board from February 2022 via the self-service portal or by sending an email to [email protected].
Insurance associations ensure that the data needed to make pension payments to the Social Insurance Board are available. To change or check your contact details, you can contact the Social Insurance Board from February 2022 via the self-service portal or by sending an email to [email protected].
Policyholders of pension contracts and beneficiaries who already receive regular payments do not have to do anything on their part. They will start receiving money from the Social Insurance Board instead of the insurance association from February.