Assets of Mandatory Pension Funds Continuing to Grow

Total Croatia News

ZAGREB, September 27, 2019 – At the end of 2018 four mandatory pension funds had a total of 1.9 million members, which is almost 92,000 more than at the end of 2017 while their net assets increased by 6.2 billion kuna to 98.13 billion kuna, the government heard on Thursday.

The government called on parliament to endorse a report on the operation of the four mandatory pension funds – Raiffeisen, Erste, AZ and PBZ/Croatia Osiguranje – in 2018.

According to data presented by Labour and Pension System Minister Josip Aladrović, at the end of 2018 the four pension funds had a total of 1,936,261 members, 91,989 more than in 2017.

He warned, however, that citizens were poorly informed of the possibility to independently choose a mandatory pension fund.

According to the Central Register of Insurees (Regos), only one percent of citizens chose a mandatory pension fund themselves, and the rest were allocated randomly.

The total net assets of the pension funds at the end of 2018 amounted to 98.13 billion kuna or 6.2 billion kuna more year on year.

“Assets in members’ personal accounts in mandatory pension funds continued to grow owing to a continued increase in contributions as well as positive macro-economic circumstances and the average yield on invested funds,” Aladrović underscored.

According to cumulative data, the four companies managing mandatory pension funds generated a revenue of 457 million kuna in 2018, which is 23 million kuna more y-o-y while their total expenditure amounted to 211 million kuna. The cumulative net profit of those companies was 202 million kuna, Aladrovic explained.

More news about the pension system can be found in the Politics section.


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