1 The role of REGOS in pension reform

1 The role of REGOS in pension reform

CONTENT Introduction Tasks Business processes Employers in reform system Conclusion 2

REFORMED SYSTEM (princeples) GENERATION SOLIDARITY 14, 5 % INSURED PERSON 5% COMPULSORY CAPITALIZED SAVING PENSIONS VOLUNTARY CAPITALIZED SAVING 4

REFORMED SYSTEM (in practice) HZMO CONTRIBUTIONS % OF INSURED PERSONS , 5 4 1 (State treasury) 5% REGOS (transient account) OMF PENSIONS PENSION INSURANCE COMPANY 5

CONTRIBUTIONS FOR THE INSURED (UP TO 40 YEARS OF AGE) I. PILLAR GROSS SALARY CONTRIBUTIONS FOR THE PENSION INSURANCE 19, 5 % 14, 5 % II. PILLAR 5% 6

DEADLINE UP TO MARCH 31 st 2002 INSURED BY FORCE OF LAW IN UP TO 40 COMPULSORY PENSION YEARS OF AGE INSURANCE INSURED BETWEEN 40 AND 50 YEARS OF AGE UP TO JUNE 30 th 2002 VOLUNTARY INTO COMPULSORY PENSION INSURANCE 7

8 The role of REGOS in pension reform

TASKS ü registration of insured persons in compulsory pension fund and recording of personal accounts for fund members ü collection of contributions and monthly documentation from employers about contribution payments for II pillar pension insurance ü execution of order for contribution transfer, account transfer and assets transfer 9

TASKS ü control of contribution payment for II pillar pension insurance ü(request for compulsory payment) üreporting to fund members about state on their personal account ü reporting to pension company about structure of their members 10

STRATEGIES ü maximum usage of available resources in Republic of Croatia ü usage of up-to-date information technology in REGOS 11

ACCOMPLISHMENT OF TASKS ü ü creation of necessary databases relaying to environment free choice of compulsory pension fund ü form and roll personal accounts of insured persons 12

ACCOMPLISHMENT OF TASKS ü ü insured expert-technical support for HAGENA insured effective flow of data between related subjects in system ü insured top protection and privacy of information 13

14 DEVELOPMENT OF BUSINESS PROCESSES

BUSINESS ENVIRONMENT HAGENA ZAP GZAOP REGOS PERSONS UNDER PAYMENT OBLIGATION AND OMF HZMO, HZZO, MFPU, MRSS, HZZ INSURED PERSONS AND PUBLIC 15

BUSINESS PROCESSES Creation and maintenance of basic and support databases 2. Acceptance of registration forms and change of compulsory pension fund 1. 16

CREATION OF BASES Data for start-up Base of candidates and matching up with other sources MINISTRY OF INTERNAL AFFAIRS TAX ADMINISTRATION REGOS Matching data of insured persons and contributors HZMO HZZO Data about OMF HAGENA 17

REGISTRATION OF INSURED PERSONS FUND II REGOS BASE Insured persons Persons under obligation OMF FUND III 18

REGISTRATION FORM (JMBG) Personal identification number of insured person: 1305968330135 20

Regos PRIJAVA OSIGURANIKA U FOND JMBG osiguranika : Ime i Prezime : Adresa stanovanja : Naziv obveznog mirovinskog fonda : Naziv prethodnog obveznog mirovinskog fonda : Naziv (ime i prezime i adresa) obveznika uplate doprinosa : MB/JMBG obveznika uplate doprinosa : Osnova osiguranja : Način pisanog izvještćivanja o stanju na osobnom računu : Adresa dostave pisane informacije : 23. 10. 2001, 13. 44 1305968330135 Unos-R-PF Broj : 768923 IVO IVIĆ ZAGREB, ILICA 117 JESENJI FOND HRVATSKI FOND PROLJETNI FOND AM - INTERNATIONAL ZIMSKI FOND 2409963330134 LJETNI FOND NESAMOSTALNI RAD Slanje na adresu stanovanja (3) Slanje na drugu adresu (10) Slanje na E-mail adresu (10) Ne želim pisanu informaciju ivo. ivic@hi. hinet. hr 21 Z@P Službenik 237

REGISTRATION FORM 22

BUSINESS PROCESSES 3. Collection of information, their processing and monitoring, and sending to interested parties 4. Transfering paid contributions into compulsory pension funds and recording of personal accounts for fund members 23

CONTRIBUTION RECORDS II PILLAR FUNDS REGOS (personal accounts) TRANSIEN TREGOS ACCOUNT CONTRIBUTORS – PERSONS UNDER PAYMENT OBLIGATION 24

BUSINESS PROCESSES 5. Regular and periodical (upon request) reporting to members of compulsory funds, and to other interested subjects, with respect to principle of information secrecy 6. Realization of pension right 25

REPORTING GOVERNAMENT OF REPUBLIC OF CROATIA HAGENA MFPU OMF REGOS REPORTING HZMO HZZ FUND MEMBERS EMPLOYERS 26 PUBLIC

PENSION – SECOND PILLAR INSURED PERSONS REGOS II PILLAR FUNDS PENSION INSURANCE COMPANY 27

28 EMPLOYERS IN REFORMED SYSTEM

TANGIBLE POINTS EMPLOYER - REGOS Ø reporting on membership in compulsory pension funds Ø(for the insured from 40– 50 years of age) Ø data on contribution per insured person Ø payment of contribution for 2 nd pillar Ø control of payment and connecting with data 29

REPORTING ON MEMBERSHIP IN THE SECOND PILLAR REGOS STICKER (INFORMATION) GIVEN TO THE EMPLOYER INSURED PERSON (between 40 and 50 years of age) 30

DATA ON CONTRIBUTION PER INSURED PERSON Ø Monthly collecting of data through the form R-S (Specification on the insured) Ø Way of delivery of the REGOS form: ü electronic way ü on magnetic media ü paper form 31

EXPANDING SCOPE OF ACTIVITIES Based on Law REGOS scope of activities will be expand: ü collection of data about all compulsory contributions, tax and surtax on income ü transfering data to associated institutions ü managing function of central accounting 32

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CIRCULATING SCHEME OF DATA AND PAYMENTS IN THE SYSTEM OF UNIFIED MONTHLY COLLECTION 9 HZZO 7 REGOS 9 TRANSIENTA CCOUNT 9 HZMO HZZ 6 TC HIN G 4 b OMF PERSON UNDER PAYMENT OBLIGATION 3 MFPU MA 2 COMPETENT INSTITUTION 1 5 8 4 a TREASURY AUTHORIZED ORGANIZATION FOR PP 35

CONTROL OF PAYMENT AND CONNECTING WITH DATA ü matching data per insured person and joint payments ü recording and monitoring contribution payments ü submiting request for compulsory payment 36

We have been relying on two pillars of pension insurance 44