LAW OF THE REPUBLIC OF MOLDOVA

of March 25, 1999 No. 329-XIV

About non-state pension funds

The parliament adopts this organic law.

Chapter I General provisions

Article 1. Subject of this law

This law determines procedure for creation, functioning and termination of activities of non-state pension funds, implementation of the state control of their activities.

Article 2. Basic concepts

For the purpose of this law the following basic concepts are used in value:

non-state pension fund (further - fund) - the non-profit organization performing collection and accounting of the money contributions brought voluntarily by physical persons or legal entities or from their name, providing increment of these means for payment of additional pension;

the member of fund (beneficiary) - the physical person contributing or from whose name other person or the employer does contributions to fund and the having right to additional pension;

fees - the money deposited or transferred into the retirement account of the beneficiary;

the individual pension agreement - the agreement signed between any physical person and fund on joining of this person to the pension plan of fund;

the collective pension agreement - the agreement signed between the employer and fund on joining of workers to the pension plan of fund;

the pension plan - the rules developed by fund and approved by the National commission on the financial market, containing conditions of introduction, accumulation of money, investments of assets, payment procedure of additional pension, etc.;

board of fund - the supreme body of fund responsible for management of its activities and compliance to its legislation;

the commission of fund - control facility behind accomplishment of the obligations provided in the collective pension agreement;

depositary of assets of fund - the bank having the license of National Bank of Moldova for implementation of financial activities and the license for implementation of depository activity in the security market;

manager of assets of fund - the bank having the license of National Bank of Moldova for implementation of financial activities, the insurance company, the company broker, the company manager or investment fund having the license for asset management of fund;

annuity - the cash amount which is saved up by the member of fund and paid to it according to provisions of this law;

Article 3. Principles and purpose of creation of fund

(1) the Fund is created on voluntary basis for the purpose of improvement of financial position of citizens in old age by payment of additional pension to them.

(2) the Fund performs the activities irrespective of system of compulsory national social insurance, on the basis of this law and other regulations.

(3) Gained investment revenue is not property of fund and is used, after deduction of all administrative expenses, but no more than 10 percent from the amount of investment revenue, it is exclusive for the benefit of beneficiaries of fund.

Article 4. Types of funds

(1) Funds happen the closed and open type.

(2) Funds of the closed and open type are created on the basis of the foundation agreement and can have one or several pension plans.

(3) persons who by the time of accession to the pension plan are workers of one or several founders of fund can only be Members of fund of the closed type.

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