Are the funds accumulated for a pension insured?
According to the laws of the Republic of Lithuania, funds accumulated by residents for pension purposes do not, under any circumstances, enter the pension accumulation company's account.
Both the contributions paid to Sodra and those paid by residents themselves are transferred to a special pension fund account, which is separate from the company, so the company cannot use them for its own purposes.
The funds accumulated by the participants are physically separated from the pension fund managers. They are held not in the accounts of the pension accumulation company but in a special bank – a depository, which is a crucial element of the security of the accumulation system.
The company does not directly control the assets of the accumulation participants but issues instructions to perform operations, the legitimacy and justification of which are verified by the bank custodian (depository).
The activities of the depositary are subject to continuous supervision by the Bank of Lithuania.
Since the accumulation company does not directly hold the funds accumulated by participants, even in the event of the pension accumulation company’s bankruptcy these funds will remain safe and will be transferred to the pension fund of another pension accumulation company chosen by the participant.