FAQ about the NPF

How does the NPF work?

Individuals and/or companies make voluntary contributions to the member's pension account. Assets are accumulated and grow at the expense of investment profits. Upon reaching the retirement age, the pensioner is paid pension benefits. During the period of pension payments, the balance still continues to generate profits.

What does the size of future pension payments depend on?

The amount of payments (pensions) depends solely on the amount of accumulation accounted at the member's pension account at the time of appointing payments and payment time. In order to make savings work more efficiently, it is desirable to begin to make pension contributions as early as possible — a longer period of time for contributions and an increase in pension funds at the expense of the compound interest will allow you to get a larger investment income. Even small contributions done for a long time allow to accumulate the good capital.

The future pension can be calculated with the help of the "Non-State Pension Calculator".

What legal form are the NPFs created in?

The non-state pension fund is a legal entity that has the status of a non-profit organization, operates and carries out activities exclusively for the purpose of accumulation of pension contributions of contributors in favor of the pension fund members with the further management of pension assets and performance of pension payments.

Who manages and serves the NPF?

The fund's Board is the management body that controls the current activities of the fund. The Chairperson and members of the fund's Board take special training and receive certificates of specialists in non-state pension provision and periodically confirm their qualifications. The fund's Board concludes contracts:

  • on administration (registration of contributors and members, keeping personal accounts, reporting and pension accounting with the NPF's administrator;
  • on asset management (investment of funds for the purpose of their augmentation) with an asset management company;
  • on saving of assets (opening and maintenance of accounts, saving of the fund's assets) with a custodian bank.

Learn more about service companies of the "OTP Pension" fund.


Who controls activities of the fund and the companies that serve it?

There is a strict state control of NPFs by regulators. The Fund and each of the service companies are subordinated to its supervisory body.

The control over the fund's activities is carried out by the National Commission that carries out state regulation in the field of financial services markets, the control of the asset management company is carried out by the National Commission for Securities and Stock Market, the control of the activities of the custodian bank is performed by the by the National Commission for Securities and Stock Market and National Bank of Ukraine.

In addition, non-state pension fund and service companies should undergo independent audits annually.

Will the accumulation be affected in the event of an unstable position of a service company?

The funds of the pension fund are accounted separately from the funds of service companies. Therefore, in case of problems with the administrator of the fund, asset management company or custodian bank, their insolvency or bankruptcy, funds of the fund's members will be saved and transferred to another company.

Is bankruptcy of the NPF and loss of savings possible?

Protection of savings is ensured by the legislation and strict control of the fund's activities by the state. The NPF is a non-profit organization and cannot be declared bankrupt with a further suspension of liability towards its members. The law provides for a special procedure for transferring funds from one NPF to another NPF and eliminating the possibility of a loss of pension funds by a member.

Who can be a NPF's member?

An NPF's member can be any person: who is a citizen of Ukraine, a foreigner or a stateless person.


Who can make contribution in favor of the members?

The contributor may be both individuals (for themselves, spouses, children or parents) and legal persons (employer or professional association, the member of which is the fund's member).


Are there any age limits for membership in the NPF?

The minimum and maximum age of the member is not limited by law. For example, the age of the youngest member of the "OTP Pension" fund is 1 year, and the oldest member is 91 years old.


Are there any restrictions or obligations regarding the amount and frequency of contributions to the "OTP Pension" fund?

There are no restrictions and obligations. You decide how much to pay and how often to do it. In Europe and the USA, for example, a monthly payment of 5 % to 10 % of the profit is considered to be the norm.


What age is the minimum age for pension payments? What is their periodicity?

The legislation determines the period for the start of pension payments — not earlier than 10 years before the official pension age (now from 50 years). Payments should last at least 10 years and can be carried out monthly, quarterly, half-yearly, annually. If the amount of savings is not high (in 2021 — up to UAH 116,040), then the funds can be received once.


Is it possible to get funds before the pension age?

Yes, in case when a member goes to a permanent place of residence abroad and has a mark in the passport or has a medical confirmed health condition (oncology, stroke, disability).

Are pension payments taxed? Are there any benefits for those who make pension contributions?

Taxation of pension payments exists, but the tax is paid only from 60 % of the amount of the payment.

In addition, tax allowances are envisaged for the contributor during the period of making contributions to the NPF. To learn more about taxes and benefits for individuals, visit the "Privileges and Taxation" page.

Legal entities also have tax incentives and benefits, if they make contributions for their employees. To learn more, visit the "Tax Incentives" page.

What is the purpose of the NPF's investment activities?

The purpose of the NPF is to protect savings against inflation and increase pension savings by obtaining investment profit at a low level of risk to fulfill its obligations to the fund's members in full. The NPF's investment policy is reflected in the investment declaration of the fund. This document contains a list of specific instruments for placing pension assets of the fund in compliance with the legislative requirements.

What investment strategy should NPFs follow?

In order to protect pension savings, assets are diversified. The legislation clearly sets out the requirements for the limits and directions of investment of pension assets. The rules for investing each of the funds are specified in its investment declaration. The priority strategy for the NPF is a conservative investment strategy that minimizes the possibility of loss of savings.

What is the investment income?

The Investment income is the income obtained as a result of investing assets of the fund in certain financial instruments. The investment income is included in the calculation of the Net Asset Value (NAV) that is calculated on a daily basis. All incomes belong to the NPF's members, are distributed among them in proportion to the size of their contributions. In fact, the investment income of the fund's member is the difference between the existing value of assets and his/her contributions.

To find out more about the current performance of the "OTP Pension" fund and view monthly analytical reports, visit the "Results of Activities" page.

Is there a guaranteed level of income that will be accrued on pension savings?

According to the legislation, the NPF's profitableness cannot be guaranteed, but you can orient yourself on historical performance and compare the fund's income with income of other funds. At different periods, the fund may demonstrate different profitableness depending on the situation on the financial market and available investment opportunities. In the process of long-term investment, there are many factors that affect the end result. If you are not satisfied with the quality of managing your pension savings, you have the opportunity to transfer funds to another fund.

Is it possible that a loss can be made instead of an investment profit?

This possibility exists. The possibility of loss is inherent in all financial instruments, there is no risk-free investment. However, a well-considered conservative investment strategy based on quality risk management and many years of experience with the "OTP Group" and professionalism of service companies allows us to talk about the reliability of the "OTP Pension" fund. It has been confirmed by performance indicators of the fund since 2009.

Is it possible to transfer funds to another NPF, if a member is dissatisfied with results of the fund's activities?

It is possible to transfer savings or their part to another pension fund, but it cannot be done only once in six month.

What happens to savings in case of a member's death?

The pension savings in the NPF is private property of the member, therefore his/her heirs have the right to inherit the funds. In this case, the entire amount is inherited in one payment without payment of taxes (for relatives in the first degree).

How can I find out about the status of an individual pension account?

You can monitor the status of a pension account in your personal online office on the website of the Fund Administrator or in a mobile application, via free monthly SMS-mail or by phone 0 800 600 012.

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