Outraged by fees for switching to another pension fund: “Sometimes people are tied to companies by these fees” | Business

You may have to pay for the replacement

Each pension fund company has set fees that they charge for administering the funds. They are deducted from the funds belonging to the participant. You can read more about it here.

However, pension accumulation companies also charge more fees – so if you want to switch to just another pension fund of the same company or change the pension accumulation company itself, you may have to pay.

“Should it really be taxed? It’s like electricity suppliers. In the beginning, everyone applied transfer taxes, and then the European Commission (EC) clarified that this should not be the case”, – with thoughts 15min shared Linas Kukuraitis, a member of the opposition democratic faction “Vardan Lietuvos”, former Minister of Social Security and Labour.

Lukas Balandis/BNS photo/Linas Kukuraitis

However, the head of the Lithuanian Investment and Pension Fund Association (LIPFA) Tadas Gudaitis explained that the situation is not the same. This fee is charged to cover the costs of changing the fund or company, as it is necessary to sell fund units, calculate everything accurately, make transfers.

“And that tax does not really stop people because it is very small. I don’t want to believe that anyone in the market is using it as such so that people don’t change anything because it will cost them,” – 15min said T. Gudaitis.

Should this order be changed? 15min talked to politicians about it and pointed out what fund or company switching fees companies charge.