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Second pension pillar

Second pension pillar

You may receive higher income at retirement age, if today you start accumulating for future

  • Accumulated funds will be invested therefore you may accumulate higher amount than your total contributions
  • The government stimulates personal contributions by allocating the additional payments from the state budget
  • Funds available in the pension fund are owned by you and will be inherited
  • When you reach full retirement age, you will receive the pension payment from two sources: Sodra and pension funds

Today, you may take care of your future: control your finances, make timely decisions, enjoy higher pension and quality of life when you retire.

Any person covered by the state social security system, who did not reach the retirement age, and also the persons, who are entitled to transfer the pension rights from the pension system of the European Union.

After signature of the pension accumulation agreement, the contribution to your personal account with the 2nd pension funds will consist of two portions:

  • 3 per cent participant’s contribution, calculated from your wage. Wage to be received by you will be decreased by this portion
  • 1.5 per cent additional incentive payment from the state budget, to be estimated from the previous year average local wage.

If you have independently enter into the 2nd Pillar Pension accumulation agreement, you will be able to select  the way for accumulating the contributions:

  • maximum – 3 per cent +1.5 per cent immediately
  • gradual increase within  5 years (year 2019 – 1.8+0.3 per cent, year 2020  – 2.1+0.6 per cent, year 2021 – 2.4+0.9 per cent, year 2022 – 2.7+1.2 per cent, year 2023  – 3+1.5 per cent)

Persons till 40 years of age, to whom Sodra automatically selects the pension accumulation company, will accumulate the pension contributions gradually, unless one month prior to expiry of the automated inclusion into the system, they submit a request to increase the tariff to maximum.

If you already are a participant of the 2nd Pillar Pension, we would like to familiarize you with the changes and novelties in the year 2019 related to implementation of the pension reform, and until 1 July 2019 you may select its further accumulation method. Learn more

The contributions transferred to the pension funds will be invested within the entire period of the agreement, thus if the situation is favorable, you have possibility to earn income. The amount to be accumulated depends on the contributions to be transferred to the pension funds, the term of accumulation and return on investment. The earlier you start, the more you accumulate.

If you are willing to increase the accumulated amount, you need to allocate additional contributions for the 2nd Pillar Pension. The government stimulates accumulation of funds for future– personal income tax exemption will be applied to a portion of such income.

You will not be required to transfer the contributions to the 2nd Pillar Pension Funds, whereas the contributions are administered by Sodra, after receipt thereof from your employer together with the payroll tax. The additional contribution to your pension fund account will be transferred by you periodically as a one-off payment.

The contributions will be transferred only for such periods, when you generate income that is subject to tax. In the event of unemployment, sickness, work abroad, etc. the amount accumulated in the pension fund will remain invested, however any new contributions will not be transferred. They will be automatically renewed when you start working or receive insured income in Lithuania.

If necessary, you may submit the company with one-month prior notice and you will be entitled to suspension of contributions  from 1 to 12 month (however such period may not exceed 12 month within the entire accumulation period). If you do not receive any insured income (or the income from employment relations), you are not required to submit the application for suspension of contributions, i.e. if you do not earn the insured income, any contributions are not made.

You may receive the following information about your pension, if you log into the SEB Internet Bank:

  • you will be able to see transferred contributions and accumulated amount and you will be able to select payment of the additional contributions 
  • selected pension fund, investment results
  • how to switch between the pension funds 
  • you will receive detailed annual reports and pension fund reviews

Every participant of the 2nd Pillar Pension Fund has its individual retirement accumulation account. The funds are held separately from assets of the management company and kept with the depository.


Administration fees are applied for the pension accumulation services. Information about the fees applied by all pension accumulation companies is available in the below specified website of the Bank of Lithuania.

The pension accumulation company does not guarantee profitability of the pension funds. Past performance is no guarantee of future results. You may get back less than your initial investment.

Participants of the 2nd Pillar Pension system, who reach full retirement age, will receive pension from two sources – from Sodra and the pension fund. The pension amount to be paid from Sodra (Pillar I) for the participants, who entered into the pension accumulation agreements before the year 2019, will be reduced pro rata following the procedure established in the the Law on State Social Insurance Pensions for the participation in accumulation scheme until the year 2019 only. The old-age pension payable since the year 2019 by Sodra (Pillar I) will not be reduced. The pension payment from Sodra (Pillar I) for the participants, who signed the pension accumulation agreement until the year 2019 and terminated the participation in the 2nd Pillar Pension Funds until 30 June 2019, will not be reduced for the period until the year 2019.

We would like to draw your attention that the 2nd Pillar Pension Accumulation Agreement may not be terminated, except for the cases when such agreement is signed for the first time, therefore the participant has a right to unilaterally terminate it within 30 calendar days from its signature date by giving a written notice to the pension accumulation company. Participants of the 2nd Pillar Pension, who entered into the pension accumulation agreement until the year 2019, have a right to terminate the pension accumulation agreement until 30 June 2019. The funds accumulated in the pension accounts of such persons will be transferred to budget of Sodra.

The specific feature of the life-cycle pension funds is that they change along with you

  • investment strategy of the target group pension funds is structured to ensure maximum growth of your assets with the pension fund indicating the year of your birth in its title, without assuming any inadequate risk
  • When full retirement age is approaching, a risky investment portion with the pension fund is gradually decreased seeking to ensure that you do not need to switch between the pension funds within the entire accumulation period

  • The target group pension funds “SEB pensija“ are the most acceptable to such participants, who are born within the period specified in the fund title:

    „SEB pensija 1954–1960“
    „SEB pensija 1961–1967“
    „SEB pensija 1968–1974“
    „SEB pensija 1975–1981“
    „SEB pensija 1982–1988“
    „SEB pensija 1989–1995“
    „SEB pensija 1996–2002“

  • SEB Asset Retention Fund is a low risk fund, which is the most acceptable to such participants, who have reached full retirement age. You will be automatically switched to this fund, if having reached your full retirement age, you fail to request an application for pension benefits  within the period exceeding one month

Administration fees are applied for the pension accumulation services. Information about the fees applied by all pension accumulation companies is available in the below specified website of the Bank of Lithuania.

The pension accumulation company does not guarantee profitability of the pension funds. Past performance is no guarantee of future results. You may get back less than your initial investment.

Participants of the 2nd Pillar Pension system, who reach full retirement age, will receive pension from two sources – from Sodra and the pension fund. The pension amount to be paid from Sodra (Pillar I) for the participants, who entered into the pension accumulation agreements before the year 2019, will be reduced pro rata following the procedure established in the the Law on State Social Insurance Pensions for the participation in accumulation scheme until the year 2019 only. The old-age pension payable since the year 2019 by Sodra (Pillar I) will not be reduced. The pension payment from Sodra (Pillar I) for the participants, who signed the pension accumulation agreement until the year 2019 and terminated the participation in the 2nd Pillar Pension Funds until 30 June 2019, will not be reduced for the period until the year 2019.

We would like to draw your attention that the 2nd Pillar Pension Accumulation Agreement may not be terminated, except for the cases when such agreement is signed for the first time, therefore the participant has a right to unilaterally terminate it within 30 calendar days from its signature date by giving a written notice to the pension accumulation company. Participants of the 2nd Pillar Pension, who entered into the pension accumulation agreement until the year 2019, have a right to terminate the pension accumulation agreement until 30 June 2019. The funds accumulated in the pension accounts of such persons will be transferred to budget of Sodra.

Accumulation of funds for retirement in a disciplined, continuous and expedient manner

Additional support from the state – a contribution from the state budget is calculated of the average gross wage (approx. 16 euros per month).

Risk diversification: your old age pension from Sodra depends on the taxes paid by the employed people and the number of pension recipients, and the pension accumulated with the 2nd Pillar Pension Funds – from the amount of contributions transferred to these funds, the term of pension accumulation and return on investments of the funds. 

Higher expectations of pension income – we would like to draw your attention that the pension accumulation company does not provide a guarantee of profitability of the pension fund. Outstanding result for one year does not necessarily mean that performance in the next year will be the same. Investment in value may rise and fall. You may lose more than your initial investment. 

Investment of savings in the pension fund on continuous basis – if you suspend your pension contributions, in the event of unemployment, sickness, within the period of pension  reforms (in the year 2013 or in the first-half year of 2019) and submit an application for suspension of the pension contributions to the pension funds or due to any other reasons. If you start working again and receive the insured income or resume your pension contributions after the suspension period, the Sodra’s contributions will be transferred to the 2nd Pillar Pension Fund.

Decrease in the management fees of the fund assets will result in higher return on investment for the participants.

The Government’s support for parents of young children: since the year 2014, the pension contributions at the rate of 1.5 of national average wage (to be calculated on the average gross wages of workers of the national economy during four quarters of the year before last year) will be paid in favour of one of parents with children under three years of age or receiving maternity (paternity) benefit or covered by the state social insurance scheme. Pension contributions will be paid for every child under the age of three.

Possibility to switch from one pension fund to another, if savings are available in the participant‘s individual account.

Possibility to receive the pension benefit in advance, if a participant is granted an early state social insurance old-age pension (no earlier than 5 years prior to the date of full retirement).

Continued entitlement to the social benefits paid by Sodra in case of illness, maternity leave and others. The benefits will not be decreased.

Savings accumulated with the pension fund will be inherited. If you pass away, your savings will be paid out to your relatives or other heirs appointed by you.

Pension from several sources – from Sodra and the pension fund.

For more information about Second pension pillar, you can call a 24/7 line at +370 5 268 2800 or visit a SEB bank unit of your choice.


Administration fees are applied for the pension accumulation services. Information about the fees applied by all pension accumulation companies is available in the below specified website of the Bank of Lithuania.

The pension accumulation company does not guarantee profitability of the pension funds. Past performance is no guarantee of future results. You may get back less than your initial investment.

Participants of the 2nd Pillar Pension system, who reach full retirement age, will receive pension from two sources – from Sodra and the pension fund. The pension amount to be paid from Sodra (Pillar I) for the participants, who entered into the pension accumulation agreements before the year 2019, will be reduced pro rata following the procedure established in the the Law on State Social Insurance Pensions for the participation in accumulation scheme until the year 2019 only. The old-age pension payable since the year 2019 by Sodra (Pillar I) will not be reduced. The pension payment from Sodra (Pillar I) for the participants, who signed the pension accumulation agreement until the year 2019 and terminated the participation in the 2nd Pillar Pension Funds until 30 June 2019, will not be reduced for the period until the year 2019.

We would like to draw your attention that the 2nd Pillar Pension Accumulation Agreement may not be terminated, except for the cases when such agreement is signed for the first time, therefore the participant has a right to unilaterally terminate it within 30 calendar days from its signature date by giving a written notice to the pension accumulation company. Participants of the 2nd Pillar Pension, who entered into the pension accumulation agreement until the year 2019, have a right to terminate the pension accumulation agreement until 30 June 2019. The funds accumulated in the pension accounts of such persons will be transferred to budget of Sodra.

SEB is a reliable pension accumulation partner

  • Long-term experience, highest skills and international competence
  • Investment accessible to large market participants
  • Continuous value added growth for the customer and stability in different situations in the financial markets
  • Responsible approach and sustainable investment
  • Convenient monitoring of the accumulated pension and convenient planning via the SEB Intenet Bank

Administration fees are applied for the pension accumulation services. Information about the fees applied by all pension accumulation companies is available in the below specified website of the Bank of Lithuania.

The pension accumulation company does not guarantee profitability of the pension funds. Past performance is no guarantee of future results. You may get back less than your initial investment.

Participants of the 2nd Pillar Pension system, who reach full retirement age, will receive pension from two sources – from Sodra and the pension fund. The pension amount to be paid from Sodra (Pillar I) for the participants, who entered into the pension accumulation agreements before the year 2019, will be reduced pro rata following the procedure established in the the Law on State Social Insurance Pensions for the participation in accumulation scheme until the year 2019 only. The old-age pension payable since the year 2019 by Sodra (Pillar I) will not be reduced. The pension payment from Sodra (Pillar I) for the participants, who signed the pension accumulation agreement until the year 2019 and terminated the participation in the 2nd Pillar Pension Funds until 30 June 2019, will not be reduced for the period until the year 2019.

We would like to draw your attention that the 2nd Pillar Pension Accumulation Agreement may not be terminated, except for the cases when such agreement is signed for the first time, therefore the participant has a right to unilaterally terminate it within 30 calendar days from its signature date by giving a written notice to the pension accumulation company. Participants of the 2nd Pillar Pension, who entered into the pension accumulation agreement until the year 2019, have a right to terminate the pension accumulation agreement until 30 June 2019. The funds accumulated in the pension accounts of such persons will be transferred to budget of Sodra.

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