Three key facts about supplementary pension insurance:
1. It is more similar to long-term saving. You contribute as much as your budget allows, and you may stop making contributions at any time.
2. Supplementary pension insurance entitles you to lower personal income tax. It is also encouraged by the state. Contributions qualify for a special tax relief, which in turn reduces your income tax liability.
3. You save for your future. The savings accumulated under supplementary pension insurance are intended for the period after retirement and are paid out as regular income - a pension annuity.
Despite its name, supplementary pension insurance is a special form of long-term, purpose-specific saving intended to provide additional income after retirement. It allows you to save during your working life and draw down your savings after the end of your career, when your income is lower.
You start receiving your savings when you retire and continue to do so for the rest of your life. A pension annuity is regular income paid from your savings. You can tailor it to your plans and use it for the things that matter most to you.
Each saver has a personal account with a pension fund, into which they may pay amounts of their choosing - monthly, quarterly, semi-annually or annually. The agreed amount may also be contributed monthly by the employer.
The basic document governing saving is the pension plan, which regulates rights and lays down the conditions, types and procedure for the payment of savings. The pension plan is implemented by a pension fund, which may be managed by an insurance company, a pension company or a bank.
Like other insurance companies, pension companies and banks, Modra charges fees for managing your savings to the extent permitted by law. These are:
We maintain a personal account for each saver, with separate records of employer contributions (collective saving) and saver contributions (individual saving). All accumulated assets are your permanent property.
You can easily monitor your supplementary pension insurance saving in Modra digital insurance portal (the m.Modra mobile app and the e.Modra web portal), including premium contributions, your personal account balance, returns earned and key information about the fund's operations.
Saving ends on the date of retirement. At that point, the payout of savings begins in the form of a pension annuity. If your saving plans do not work out, you may withdraw your savings early.
All savings are inheritable, which means that even in the worst case you also provide financial security for your loved ones. When joining supplementary pension insurance, or at any later time, you may designate one or more beneficiaries in the event of death by means of a special form, and you may also change them later.
If you do not designate beneficiaries in the event of death, the right to a one-off cash payment passes to your heirs on the basis of a final probate decision.
If you save in several Modra pension funds or under different pension plans, beneficiaries in the event of death must be designated separately for each fund or pension plan.
Very safe.
As an increasingly important part of social security, supplementary pension insurance is in itself one of the safer forms of long-term saving. Modra's operations are subject to strict supervision by the Insurance Supervision Agency, while the operation of the funds is monitored monthly by the Securities Market Agency and the custodian bank, which continuously reviews all transactions and ensures the correct calculation of balances on personal accounts. The operation of the funds is also monitored by fund committees composed of employer representatives and employee representatives.
At the same time, saving is tailored to the age of the individual saver and ensures a high level of safety for savings in the period before retirement.
The savings remain yours and safe.
At Modra, we provide supplementary pension insurance through mutual pension funds. One of their key features is that the fund's assets are the exclusive property of the savers and are therefore strictly separated from our own core assets and from the assets of any other funds that we manage.
In the extreme event that Modra ceased operations, the pension fund would be taken over by another provider or the custodian bank, and savers would retain all their savings and all existing rights defined in the fund's pension plan.
By saving under supplementary pension insurance, you are entitled to special tax relief. Contributions paid in a given year reduce your personal income tax base, and the state refunds part of your tax or reduces any additional tax payable.
Tax relief applies to contributions of up to 24% of the mandatory pension and disability insurance contributions paid, which equals 5.844% of your gross salary.
For those with higher salaries, the amount of tax relief is capped at EUR 3,224.18 per year.
If you are employed in the private sector, the employer has the primary right to claim the tax relief first (for collectively paid premiums), while you may claim the remaining part (for individually paid premiums).
If you are employed in the public sector, you may use the special tax relief in full, regardless of the amount of the premium paid by your employer.
The final deadline for reducing personal income tax for the current year is the last working day in December. Pay attention and do not wait until the very last moment unless necessary. If you pay the premium on the last day and outside payment system operating hours, the relief will be recognised in the following year. The funds must reach Modra's account in time.
Many people wait until the last month and pay a high premium only in December. Nevertheless, tax relief is taken into account for all premiums paid during the entire year. You can ease pressure on your December budget by arranging monthly premium payments.
No. Reporting to the tax authority (FURS) is Modra's responsibility.
Each year by 31 January, Modra prepares a certificate of premiums paid, which serves as the basis for verifying the accuracy of the informative personal income tax calculation sent to you by FURS. Your only task is therefore to verify the accuracy of the data in the informative tax calculation you receive.
1. December is the last month in which you can reduce your personal income tax base by using tax reliefs. One of the best tools is supplementary pension insurance.
2. For many employees, the supplementary pension insurance premium is already paid by the employer. This applies to all public sector employees and many other employees in the private sector.
3. You may also accumulate savings in a supplementary pension insurance savings account yourself. By saving for an additional pension, you also reduce your personal income tax assessment.
4. The state refunds part of your income tax or reduces any additional tax payable. Tax relief applies to contributions of up to 5.844% of your gross salary, but not more than EUR 3,224.18.
Modra's life-cycle fund consists of three sub-funds: dynamic, prudent and guaranteed. The sub-funds have different investment policies that adapt to your age. As you grow older, your savings are automatically transferred from the dynamic sub-fund to the guaranteed sub-fund.
Dynamic sub-fund: for persons under 50 who still have a long time until retirement, can take more risk and save in equities.
Prudent sub-fund: for persons under 60 who are somewhat closer to retirement, but still far enough away to take moderate risk and save in equities and bonds.
Guaranteed sub-fund: for persons over 60 who are close to retirement. The sub-fund has a guaranteed return and ensures a high level of safety for savings.
The greatest advantage of saving in a life-cycle fund is that the investment policy is tailored to the individual's age - from more risky to safer. For younger savers, who have the longest period until retirement, Modra invests savings mainly in equities. As retirement approaches, the proportion of equities begins to decrease and the proportion of safer investments, such as bonds, increases.
In the final years before retirement, savings are protected by investing in the safest investments, while at the same time the saver is guaranteed a return on all accumulated assets.
The life-cycle investment policy therefore provides higher returns when retirement is still far away, while ensuring a high level of safety for savings in the period before retirement, taking into account an appropriate balance between return and risk.
The mechanism of life-cycle pension funds is simple. When you reach the threshold age for transfer to a less risky sub-fund, your contributions are redirected automatically.
Modra has the right to transfer the accumulated assets to a less risky sub-fund within three years, or to do so immediately if, acting with professional due care, it determines that this is most beneficial for the saver. Once a year, you may change sub-funds free of charge on your own. If you are older than 50, certain age restrictions apply.
We recommend that you save in the sub-fund that is most appropriate for your age. It is best to leave the timing of the sub-fund change to Modra's specialists, who are best placed to determine the most appropriate moment for the change.
Those who are already saving with Modra decide for themselves whether to switch to a more aggressive investment policy. New members join the fund according to their age, unless they decide otherwise themselves and notify us after receiving the notice of inclusion.
Individual saving means your own contributions to a pension fund.
You decide how you will save under supplementary pension insurance. You may change the amount of your contributions at any time. You may suspend saving temporarily without costs and resume it once your finances allow.
You contribute as much as your budget allows. You may stop contributing or reduce the amount of contributions at any time if your life situation temporarily disrupts your saving plans. Saving adapts to you.
We recommend a premium in the amount of the available tax relief (5.844% of gross salary or 24% of mandatory pension and disability insurance contributions, and no more than EUR 3,224.18 per year).
If you already save through your employment (i.e. your employer pays premiums), the employer has the primary right to claim the tax relief first (for collectively paid premiums), while you claim the remaining part (for individually paid premiums).
Collective supplementary pension insurance is collective saving arranged by an employer or sole proprietor for their employees, with an agreed amount paid into the pension fund each month (or annually, semi-annually or quarterly). Saving lasts until the employees retire, after which the payout of savings begins.
We take care of employee enrolment and communication, while the simple payment system does not increase the workload of your specialist departments.
Simple and efficient, with Modra's support.
Modra presents and advises company management on the establishment of collective saving for employees and prepares all documentation required for conclusion. After the contract is signed, Modra enables the employer to exchange employee and monthly premium data electronically in a simple and secure manner.
If you are employed in the private sector, you are included on the date the pension plan formation contract is concluded, or on the date you start work, all under the same conditions. Any employee who does not wish to be included submits a written statement to the employer. The employer may restrict the right of inclusion for persons employed for less than one year.
If you are employed in the public sector, you are automatically included in the pension fund for public employees on the basis of a special law and collective agreement from August 2003 onwards, or from the date you start work.
You will receive by post at your home address a notice of inclusion, which serves as your contract with Modra, and a code for access to the digital branch consisting of the m.Modra mobile app and the e.Modra web portal. This gives you 24/7 access to monitor and manage your saving.
The amount of the monthly contribution to collective saving is a matter of agreement between the employer and the employees or their representatives (the representative trade union at the employer, the works council or the assembly of workers). The agreement is set out in the pension plan financing contract.
When determining the premium amount, the following are taken into account:
For public sector employees, the premium amount is agreed between the state and public sector trade unions and is adjusted periodically.
The accumulated assets continue to earn returns in your personal account even if no new contributions are made. Your saving remains dormant and ends on the day of retirement.
If the new employer does not provide saving, you may continue paying premiums to Modra yourself (individual saving). Upon retirement, you may combine all your savings at Modra and choose the pension annuity that best suits your lifestyle.
On the date of retirement, you become entitled to a pension annuity.
Your employer or you yourself send Modra a notice of retirement.
After retirement, or after the end of the month in which the last premium was paid into your pension account, Modra informs you of the possible ways of drawing your savings by sending you informative annuity calculations from which you may choose - the amount of the annuity depends on the amount you have saved.
You choose the annuity that fits your plans and submit proof of retirement.
After receiving your decision (you return the informative calculation with the selected annuity marked), we send you an offer with the final annuity amount for signature in the following month. Please return the offer as soon as possible.
In the month following receipt of the signed offer, you receive the annuity policy, and the first annuity payment is made on the 10th working day of the month.
A pension annuity is regular income paid from your savings and received for the rest of your life.
If you do not yet need the annuity at retirement, you may leave your savings in the pension fund, where they continue to earn the achieved return or at least the guaranteed return on a monthly basis. You may decide to start annuity payments at any later time. Once you notify us, we prepare everything necessary to start the payout.
If you have saved in supplementary pension insurance funds with different providers, you may combine all of your savings and choose at Modra a pension annuity calculated on the basis of all accumulated assets. To transfer funds, complete and sign the transfer request and send it to us. We will take care of all the remaining procedures.
The amount of the annuity depends on the amount of accumulated assets, your age at the start of payout, the technical interest rate applied, annuity mortality tables and payout costs. The calculation also takes account of specific conditions depending on the type of contributions (individual contributions, employer contributions under ZPIZ-1 or ZPIZ-2) and the type of annuity selected. You may choose between annuities with or without a guaranteed payout period (inheritability), as well as accelerated annuity payment options.
You receive the selected annuity for the rest of your life. The technical interest rate taken into account when determining the annuity is guaranteed and cannot be reduced during the payout period. If returns exceed the guaranteed return, 90% of the excess return for the individual year belongs to the insured persons in the form of a permanent annuity increase (profit allocation). This means that in future years your annuity may only be higher than the first annuity paid (an increasing annuity) and will under no circumstances be reduced.
You will receive the pension annuity for the rest of your life.
You may choose from different types of annuities, including those with a guaranteed payout period (inheritability) or without one, and accelerated payout options. The selected annuity type affects the dynamics and amount of payments.
Choosing an annuity with a guaranteed payout period means that if the annuity recipient dies before the expiry of the guaranteed payout period, the annuity is paid to the beneficiaries or heirs until the end of that period.
You choose the number of guaranteed years yourself when the annuity contract is concluded. The selected guarantee period affects the amount of the annuity. The guaranteed period may last from 1 to 20 years.
Accelerated annuity options also include a guaranteed payout period for the duration of the accelerated payout period. If the annuity recipient survives the selected guaranteed or accelerated period, the annuity continues to be paid for the rest of their life.
Choosing an annuity with an accelerated payout period means that, in the initial period, you receive the majority of the accumulated assets, so the annuity amount is higher during that period. After the accelerated period ends, you then receive a lower amount for the rest of your life.
You choose the number of years in the accelerated payout period yourself when concluding the annuity insurance. The accelerated period may last from 1 to 20 years. During that period, the annuity also includes death benefit protection (a guaranteed payout period).
The selected length of the accelerated period affects the amount of the annuity.
Yes, if you have chosen an annuity with a guaranteed payout period or an accelerated payout option. In that case, the annuity is inheritable during the selected guaranteed or accelerated period. If the annuity recipient dies, we pay the annuity until the end of that period to the beneficiary designated by the annuity recipient, or to the heir if no beneficiary was designated.
No, if you have chosen an annuity without inheritability.
You designate beneficiaries in the event of death when concluding the annuity insurance and may change them at any time later by submitting a new beneficiary designation form to Modra Insurance Company.
If the annuity recipient survives the selected guaranteed or accelerated period, we continue paying the annuity until the end of their life.
Yes. All annuities are taxed, but not in full. Only one half of the annuity paid is taxable; the other half is not included in the retiree's personal income tax base. Whether advance income tax is withheld at the time of payment depends on the amount of the annuity.
For an individual annuity payment of less than EUR 160, no advance income tax is withheld. For annuities above EUR 160, we withhold advance income tax on each payment at a rate of 25% of one half of the annuity amount.
The annual personal income tax liability is assessed by FURS (Financial Administration of the RS) by decision for the individual calendar year (the informative tax calculation sent, which is deemed to be the tax assessment decision after the objection period expires), taking into account all receipts and the advance tax already paid during the year.
If the annuity recipient considers that, given their other income, the advance income tax is too high, they may claim a reduced advance income tax rate of 16%. The form for claiming the reduced advance rate must be submitted each year to FURS and to Modra Insurance Company.
No. Reporting to FURS is Modra's responsibility.
By the end of January each year, Modra sends recipients of payments a summary statement of receipts paid in the previous calendar year. It also notifies FURS of the payments and of the advance income tax withheld. When you receive the informative income tax calculation, you therefore only need to verify that all data match and that the annual tax assessment is correct.
Payment of accumulated assets in a lump sum is possible under the following conditions:
If you are employed in the private sector, you may also request a lump-sum payment for assets accumulated through employer contributions paid up to 31 December 2012, provided that at least 10 years have elapsed since your inclusion in supplementary pension insurance.
If you were employed in the public sector, you may request a lump-sum payment provided that, by 31 December 2016, 10 years had already elapsed since your inclusion in the pension fund and that on that date you no longer had the status of a public employee.
A lump-sum payout of savings (including in the event of the saver’s death) constitutes an extraordinary termination of saving and, as such, is not aligned with the purpose and tax incentives of supplementary pension insurance.
When accumulated assets are paid out in a lump sum, Modra withholds advance income tax at a rate of 25%. In payouts to beneficiaries/heirs, this is also the final tax liability.
In the case of a lump-sum payout, the annual income tax liability is assessed by FURS - Financial Administration of the RS (the informative tax calculation sent, which is deemed to be the tax assessment decision after the objection period expires), taking into account all receipts and the advance income tax already paid during the year - the annual income tax settlement.
A lump-sum payout may also temporarily affect the amount of certain social transfers (reduced kindergarten fees, child benefits, etc.), so we recommend that you familiarise yourself with all possible tax consequences before making a decision.
If you opt for a lump-sum payout before 10 years have elapsed since the start of saving in the pension fund, an additional 8.5% insurance transaction tax is also withheld on payout.
In addition to the taxation described above, in the event of extraordinary termination of saving, Modra also charges exit costs of up to 1% of the redemption value of the assets.
A distinction must be made between savings during the accumulation period and during the annuity payout period.
The assets in a personal account with Modra are the property of the saver, so the saver may designate a beneficiary in the event of death. If the saver dies before retirement, those assets belong to the designated beneficiary or beneficiaries, or to the heirs if no beneficiaries were designated.
On the basis of a received claim, Modra pays the beneficiary the corresponding one-off cash payment in the amount of the redemption value of the deceased saver’s assets. If the saver did not designate a beneficiary in the event of death, the right to a one-off cash payment passes to the heirs pursuant to a final probate decision, which the heir submits to Modra together with the payout request.
An annuity may also be inheritable for a certain period during the payout phase. Before the start of payout, the saver chooses the form of annuity payment that is most suitable for them and, when selecting certain annuity types, designates a beneficiary in the event of death.
Yes, the pension annuity is also inheritable or payable to beneficiaries if you wish so. Upon retirement, you may choose an annuity with inheritability, i.e. an annuity with a guaranteed payout period. A guaranteed payout period means that if the annuity recipient dies before the guaranteed payout period expires, the annuity continues to be paid until the end of that period to the beneficiary chosen by the recipient, or to the recipient's heir if no beneficiary has been designated.
The number of years in the guaranteed payout period is chosen by the recipient. The guaranteed period may last from 1 to 20 years. If the annuity recipient survives the selected guaranteed period, the annuity is paid to them for the rest of their life.
The annuity recipient designates beneficiaries in the event of death when concluding the annuity insurance and may replace/change them at any time by submitting a new beneficiary designation form to Modra.
When joining supplementary pension insurance, or at any later time, the saver may designate one or more beneficiaries in the event of death by means of a special form.
A saver who saves in several Modra pension funds or under different pension plans designates beneficiaries in the event of death separately for each fund or pension plan.
The saver may replace/change beneficiaries in the event of death at any time by submitting a new beneficiary designation form to Modra.
The First Pension Fund (hereinafter referred to as PPS) was established by a special Act on the First Pension Fund of the Republic of Slovenia and the Restructuring of Authorized Investment Companies (ZPSPID). According to it, shareholders of authorized investment companies (PIDs) who still had unused certificates could keep them in PID shares or exchange them for pension vouchers.
Pension vouchers could also be obtained by exchanging them for so-called employee certificates or by purchasing them on the stock exchange.
Pension vouchers were traded on the stock exchange until the end of 2002, after which pension vouchers were automatically exchanged for an insurance policy of the First Pension Fund, at the rate of 1 Pension voucher (Pbon) for one point on the insurance policy.
Since January 1st, 2003, PPS has been a closed mutual pension fund, to which contributions are no longer possible.
KS PPS represents the payment part of the First Pension Fund. It is therefore the fund from which pension annuities are paid out.
KS PPS was formed on 13 July 2004 for all insured person who have or will turn 60 and thus acquire the right to annuity.
According to the General Terms and Conditions of the First Pension Fund, you will become entitled to annuity payments in the month in which you turn 60. At that time, we will send you a registered letter with a statement by post, which contains a set of possible forms of payments with the corresponding amounts, from which you can choose.
Therefore, it is important that you inform us of any change of address.
The types and amounts of annuities available to you depend on the amount of savings you have made when you reach the age of 60. We will inform you about the payment options by mail in the month in which you reach the age limit.
Yes, under the new law it is possible to receive a payment even before I turn 60. To receive a payment, please fill out this form.
Yes, under the new law you can request a lump sum payment of the remaining value of your KS PPS policy. The payment request is available here.
No. No PPS payment is taxable. However, it may have an effect on the amount of social transfers, as the payment is treated as income.
KS PPS – I already receive a PPS pension annuity (age 60 and over):
• The waiting period for payout is 6 months from receipt of a complete claim;
• During the waiting period, you will receive pension annuity transfers as before;
• A one-time payout will be made in the month following the expiration of the 6-month waiting period;
• The claim cannot be canceled after submission;
• If the insured person dies during the waiting period, the claim will be rejected.
PPS – I do not yet receive a PPS pension annuity (age under 60):
• You will receive the payout no later than 60 days from receipt of a complete claim.
• The payout amount will be equal to the surrender value of the policy valid in the payout month.
MR are liabilities to KS PPS policyholders, annuity recipients, and represent an estimate of the present value of annuities paid out. The present value of future cash flows, which consist of annuities paid out in the future, depends on the assumed remaining lifespan of the policyholders and the interest rate at which these cash flows are discounted. The interest rate is prescribed by law (ZPSPID) at one percent per year and is taken into account when the annuity is assessed. The estimate of the remaining lifespan depends on mortality tables.
To change your bank account information, please fill out this form. Please return the completed form and the attachment to us by regular mail to Modra zavarovalnica, d. d., Dunajska 119, 1000 Ljubljana or by email as a return message.
To change your address, please fill out this form and attach a copy of your personal document showing the new address. Please send the copy to us by regular mail to Modra zavarovalnica, d. d., Dunajska 119, 1000 Ljubljana or by email to info@modra.si.
Yes. If the insured/member dies before acquiring the right to a pension annuity, the right to the sum insured in the amount of the policy's redemption value belongs to his estate and passes as part of his estate to his heirs (extraordinary termination of membership).
If the insured is already receiving a PPS pension annuity and has chosen an annuity with a guaranteed payment period when the payment begins, the annuity is paid to the beneficiaries or heirs until the expiry of the guaranteed period.
Yes. We can pay out the funds saved from the First Pension Fund (PPS) to your bank account, and then you can transfer these funds to the supplementary pension insurance fund.
Modra zavarovalnica will not charge you any entry fees for such payments until 31 December 2026.
Information for transferring funds to the Life-Cycle Pension Fund for Public Sector Employees (You can transfer funds to this fund if you are employed in the public sector and have already taken out a supplementary pension insurance policy with Modra zavarovalnica, which was taken out for you by your employer.)
TRR: SI56 0400 1004 6645 446
Reference: SI00 88041619-(hyphen)tax number member
Transferring funds details to the Modra life-Cycle pension fund - MKPS (You can transfer funds to this fund if you are not employed in the public sector.)
TRR: SI56 0400 1004 6646 319
If you have a collective supplementary pension insurance policy with Modra zavarovalnica - the premiums are paid by your employer - you can transfer funds under the reference: SI00 88041119- (hyphen) member's tax number
If you do not yet have a supplementary pension insurance policy with Modra or it is inactive, you can transfer funds under the reference: SI00 88041129-(hyphen) member's tax number and at the same time fill out the Accession Declaration, which is available here. You can send it to us at info@modra.si or by mail to Modra zavarovalnica, Dunajska cesta 119, 1000 Ljubljana.
The digital portal consists of the e.Modra web portal and the m.Modra mobile application. It provides savers with 24-hour access to saving policies, the ability to prepare personal informative calculations, and an overview of their saving together with data management options.
With the digital portal, you can:
(1) In the documents sent to your home address by post when you were included in the pension fund.
(2) In the notice on rights arising from supplementary pension insurance, which you receive at home each year at the end of January.
(3) If you have misplaced the identification code, you may request it again during the registration process. Select the registration procedure using the identification code, then choose the option 'Send code'. We will send the new code to your home address.
Check once again that you did not make a typing error when entering your details. If you use the copy-paste function, make sure that a space was not accidentally copied at the beginning or end of the entered data.
If you continue to experience difficulties, you can also contact us on the toll-free number 080 23 45 or at info@modra.si.
Sometimes, due to system overload, the email message may not arrive in your inbox immediately. In that case, wait a little and then check your received messages again later.
Also check your spam folder or promotions tab.
If you continue to experience difficulties, you can also contact us on the toll-free number 080 23 45 or at info@modra.si.
If you no longer use the email address we have on record, you will not be able to reset the password for access to the digital branch.
Please send your details (first name, last name, tax number, old email address) together with the new email address you wish to use for logging in to Modra Insurance Company's digital branch to info@modra.si.
Tip: When registering for and using the digital branch, do not use work email addresses, since it is important that, if you ever need to change your password or communicate with Modra, you have quick and uninterrupted access to your email.
Deleting your user account is straightforward.
A user of Modra's digital insurance portal can delete their user account independently. After logging in to the portal, go to your profile and select the option to delete the user account.
If you use the digital insurance portal on the web (e.Modra), you may also simply remove your user account from the list of users without deleting it. In that case, the user account remains intact and can be reactivated the next time you log in, while it will no longer be visible in the list of users.
080 23 45
info@modra.si
Digital branch