| Abstract [eng] |
The purpose of this paper is to compare the regulations of cumulative pension funds systems in Latvia and Lithuania. The position of the cumulative pension funds system in the pension system, the purpose and process of the creation of cumulative pension funds systems in Lithuania and Latvia are also discussed in this paper. Pension system can be divided into the tiers. There are no general agreement between the academics regarding the position of the cumulative pension funds system in the pension system. Some of the academics qualify the cumulative pension funds system as the second tier, the others qualify it as the third tier of the pension system. The voluntary cumulative pension funds system was created in Lithuania. In Latvia the participation in the cumulative pension funds system was mandatory to the persons who were under thirty years old, the others could voluntary join the cumulative pension funds system. The general feature of these systems is that the participants can not terminate their participation in the the cumulative pension funds system and return to the public pension system. The management of assests of the cumulative pension funds systems are in the hands of private companies, which are strictly supervised by the public institutions. The value of the cumulative pension funds assets have decreased regarding the fall of the value of the stocks in the market. There should be made some changes of the regulations of the cumulative pension funds system regarding the decrease of the risk to lose accumulated pension capital to the participant of the cumulative pension funds system. |
