Lithuania’s Tier II Pension Funds Increase Assets by 18% in 2012
Lithuania’s voluntary second-tier pension funds boosted net assets by almost a fifth last year, providing participants with an average return of 11.21 percent.
The 30 active funds had combined net assets of 4.8 billion litai ($1.8 billion) at Dec. 31, or 18 percent more than a year earlier, the central bank in the Lithuanian capital, Vilnius, said in a statement on its website today.
Introduced in 2004, second-tier pension funds are funded by diverting social security contributions of the current 1.07 million participants in the Baltic nation of 3 million people. They received about 300 million litai from the state social insurance fund in 2012, meaning they generated the remaining asset increase of 426 million litai through investment activity, the Bank of Lithuania said.
Lithuania’s nine third-tier pension funds, which manage private individual pensions, had 28,600 participants at year-end and combined net assets of 108 million litai, according to the central bank. That was 15 million litai more than a year earlier.
To contact the reporter on this story: Bryan Bradley in Vilnius at firstname.lastname@example.org
To contact the editor responsible for this story: Balazs Penz at email@example.com