NON-STATE PENSION SECURITY

Help your employees earn extra income in the future in the form of a private pension! NON- STATE PENSION FUND (NPF) is the optimal tool for this purpose.

NPF is a legal entity having the status of a non-profit organization, operates and conducts activities solely for the purpose of accumulating pension contributions for the benefit of members of the pension fund with the further management of pension assets.

Accumulations at NPF are formed at the expense of employer contributions for the benefit of their employees and employees’ personal contributions. After reaching retirement age (currently it is 50 years old), a NPF participant is entitled to a non-state pension.

According to paragraph 3.5. Order No. 5 of January 13, 2004, of the State Committee of Statistics of Ukraine, does not belong to the payroll “contributions of enterprises under the contracts of voluntary health and pension insurance of employees and their families”. That means, that the employer ‘s pension contributions for the benefit of their employees are exempt from the Social Security contribution.

According to item 164.2.16. Of the Tax Code of Ukraine, the income of an individual is not taxed in the form of pension contributions paid in his favor by the “resident employer at his own expense under the contracts of the non-state pension provider of the taxpayer, if such amount does not exceed 15 percent of the salary paid by that employer during the taxable month for which the pension contribution is paid, contributions to bank funds, but not more than 2.5 minimum wages, have been established by Law on State Budget of Ukraine for the year, calculated per month for a set of such contributions. ”

Also, employers’ contributions under non-state pension contracts are fully grossed out, so they reduce income tax.

In addition, it is quite clear that with the entry into force of the 2nd cumulative level of the Ukrainian pension system, the importance and relevance of the NPF in ensuring the growth of social standards of life of ukrainians will increase dramatically.

Employer participation in the NPF increases the motivation and loyalty of employees (extends the “social package”), reduces the “turnover” of personnel, forms a positive image of the company.

We will create for you a non-state pension fund, which will become a perfect example of showing your company’s the highest level of corporate responsibility. Having a team with many years of successful experience in asset management and administration of NPF, we will provide you with the highest level of service.