“Trasta komercbanka”, “Parekss banka” and life insurance company “Latva” have founded a non-profitable Joint Stock Company – open pension fund “Social Guarantee”.
The open pension fund “Social Guarantee” will begin its activity on July 1, 1998.
Registered share capital of the Fund is 250 000 Lats – this is the largest share capital among Latvia’s private pension funds.
Target of the fund is to enable inhabitants of Latvia to save up their non-state pension.
In accordance with the law which becomes effective on July 1, 1998, employers can deposit in pension funds up to 10% from the calculated employees salary without paying the social tax for this amount. Thus employees – members of the fund - acquire a possibility to save up a definite capital for their old-age. This capital will serve as a basis for the additional non-state pension.
The funds collected will be managed by “Parekss Banka”. The Fund will open a private account for every participant. The saved up funds of each account will be invested in accordance with the personal pension plan.
According to the law “On Personal Pension Funds”, these funds will be controled by the Bank of Latvia, State Insurance supervision inspection board, the bank, managing the Fund, an auditor and pension plan committee.