Non-State Pension Funds (NPF) – a worldwide system of accumulating funds to provide a supplementary pension to the state.
The main objective of the fund is to accumulate capital over a long period, which will then be paid in the form of pension payments to its members, through small but regular contributions. The funds in the participant’s account are accumulated due to constant contributions and daily interest capitalization. During the payout period, the funds continue to operate and generate investment income.
As NPF accumulate funds solely to provide an additional pension, participants can withdraw funds beyond a certain age. This is an important constraint that allows participants to protect their retirement savings from the temptation to spend them early.
The activity of NPF is carried out with the participation of three companies:
Administrator – a company that deals with the conclusion of pension contracts and accounting of participants and their accounts.
AMC – an asset management company – invests retirement funds in order to multiply them.
Custodian Bank – A bank that serves the fund’s accounts and stores the assets of the pension fund.
Currently, OTP Capital manages the assets of three private pension funds. The company is the founder of two of them: OTP Pension – the largest open-ended NPF of Ukraine, which started its operations in 2007; FreeFlight is the only NPF with a monetary strategy. The fund has been under the tutelage of OTP Capital in 2018.
OTP Capital also manages the Magistral Fund, the largest fund among professional PNFs owned by the Professional Union of Railway and Transport Builders of Ukraine.
