In July of this year, 24,600 2nd pension pillar participants changed their previously chosen plan. This is twice as many as the average in previous months, VSAA reported. As a reminder, on July 1, amendments to the Law on State Funded Pensions came into force, which stipulate that VSAA must inform pension fund managers about 2nd pension pillar participants once a quarter. Based on the information provided, managers assess whether a person has really chosen a plan that is suitable for their age and, if necessary, invite them to change it. The activity of 2nd pension pillar participants in changing plans increased already in the first month after the amendments came into force. Previously, plan changes occurred mainly due to a change of manager. Of those who chose a different plan, 29% changed their investment plan within the same manager, and 71% chose another. In turn, in July, 61% of participants chose a new plan within their fund and only 39% switched to another manager. Most clients have chosen an active, high-risk plan. You can find out your manager and investment plan on the Latvija.gov.lv portal by selecting the e-service "VSAA Information and Services". The plan's profitability can be examined on the www.manapensija.lv portal. The pension plan manager can be changed once a year, and the plan – twice a year for each manager. The application must be submitted on the Latvija.gov.lv portal or at the VSAA customer service centre. As reported, from 1 July 2024, the State Social Insurance Agency (VSAA) will transfer personal data about 2nd pillar pension participants to pension asset managers and banks. Until now, information about the manager used by residents was available only to the state and each individual client. Now, managers will have access to the following data: the participant's first and last name, personal identification code, declared address and information about the selected investment plan. What do the new rules mean for residents and banks and what are the risks of sharing such information? This is covered in the article Amendments to the 2nd pension level come into force on July 1. What do I need to know about this?
