Investment of pension reserves: new rules
New requirements for investing pension reserves have been effective since 1 January 2021. These reserves include funds meant for voluntary non-public pension that consists of contributions of individuals and organisations.
Specifically, non-governmental pension funds (NPFs) will now have limited possibilities for investing pension reserves in high-risk instruments. The single limit on such investments will reach 7% by 1 January 2025. The rules also introduce a 5% limit on investments in mortgage securities and tighten requirements for investments in perpetual bonds.
From now on, the rules for investing pension reserves have been brought in line with the rules for investing pension savings accumulated in the mandatory pension insurance system. They will help improve the protection of NPF clients and mitigate the investment risks of the funds.
The implementation of innovations will be phased to allow NPFs enough time to properly prepare given the effects of the pandemic, among other things, and not to make them sell out their assets at reduced prices.