1. 1 The role of REGOS in pension reform

2. 2CONTENT Introduction Tasks Business processes Employers in reform system Conclusion

3. 3 PREVIOUS PENSION SYSTEM HZMO CURENT PENSIONERS CURENT PENSIONERS EMPLOYEES CONTRIBUTION 19,5% PENSIONS BASED ON PAY AS YOU GO SYSTEM

4. 4 INSUREDPERSONINSUREDPERSON REFORMED SYSTEM (princeples) GENERATION SOLIDARITY COMPULSORYCAPITALIZEDSAVINGCOMPULSORYCAPITALIZEDSAVING 5 % 14,5 % VOLUNTARYCAPITALIZEDSAVING PENSIONS PENSIONS

5. 5 PENSIONS REFORMED SYSTEM (in practice) REGOS (transient account) REGOS OMFOMF HZMO (State treasury) HZMO PENSION INSURANCE COMPANY CONTRIBUTIONS OF INSURED PERSONSCONTRIBUTIONS PERSONS 14,5 % 5 % PENSIONS

6. 6 CONTRIBUTIONS FOR THE INSURED (UP TO 40 YEARS OF AGE) GROSS SALARY CONTRIBUTIONS FOR THE PENSION INSURANCE 19,5 % 14,5 % 5% I. PILLAR II. PILLAR

7. 7 UP TO JUNE 30 th 2002 VOLUNTARY INTO COMPULSORY PENSION INSURANCEDEADLINE INSURED UP TO 40 YEARS OF AGE UP TO MARCH 31st 2002 BY FORCE OF LAW IN COMPULSORY PENSION INSURANCE INSURED BETWEEN 40 AND 50 YEARS OF AGE

8. 8 The role of REGOS in pension reform

9. 9TASKS registration of insured persons in compulsory pension fund and recording of personal accounts for fund members collection of contributions and monthly documentation from employers about contribution payments for II pillar pension insurance execution of order for contribution transfer, account transfer and assets transfer

10. 10TASKS control of contribution payment for II pillar pension insurance (request for compulsory payment) reporting to fund members about state on their personal account reporting to pension company about structure of their members

11. 11STRATEGIES maximum usage of available resources in Republic of Croatia usage of up-to-date information technology in REGOS

12. 12 ACCOMPLISHMENT OF TASKS creation of necessary databases relaying to environment free choice of compulsory pension fund form and roll personal accounts of insured persons

13. 13 ACCOMPLISHMENT OF TASKS insured expert-technical support for HAGENA insured effective flow of data between related subjects in system insured top protection and privacy of information

14. 14 DEVELOPMENT OF BUSINESS PROCESSES

15. 15 BUSINESS ENVIRONMENT REGOS ZAP GZAOP INSURED PERSONS AND PUBLIC HZMO,HZZO, MFPU,MRSS,HZZ PERSONS UNDER PAYMENT OBLIGATION AND OMF HAGENA

16. 16 BUSINESS PROCESSES 1. Creation and maintenance of basic and support databases 2. Acceptance of registration forms and change of compulsory pension fund

17. 17 HZZO CREATION OF BASES REGOSREGOS MINISTRY OF INTERNAL AFFAIRS Data for start-up Base of candidates and matching up with other sources HZMO Matching data of insured persons and contributors TAX ADMINISTRATION HAGENA Data about OMF

18. 18 REGISTRATION OF INSURED PERSONS REGOS BASE Insured persons Persons under obligation OMF FUND I FUND II FUND III

19. 19 REGISTRATION PROCESS

20. 20 REGISTRATION FORM (JMBG) 1305968330135 Personal identification number of insured person:

21. 21 13.44 23.10.2001, Unos-R-PFPRIJAVA OSIGURANIKA U FOND Z@P Službenik 237 JMBG osiguranika : 1305968330135 Ime i Prezime : Adresa stanovanja : Naziv obveznog mirovinskog fonda : Naziv (ime i prezime i adresa) obveznika uplate doprinosa : MB/JMBG obveznika uplate doprinosa : Naziv prethodnog obveznog mirovinskog fonda : IVO IVIĆ ZAGREB, ILICA 117 Osnova osiguranja : Način pisanog izvještćivanja o stanju na osobnom računu : Adresa dostave pisane informacije : AM - INTERNATIONAL 2409963330134 NESAMOSTALNI RAD Slanje na adresu stanovanja (3) Slanje na drugu adresu (10) Slanje na E-mail adresu (10) Ne želim pisanu informaciju 768923 Broj : Regos HRVATSKI FOND ivo.ivic@hi.hinet.hr JESENJI FOND HRVATSKI FOND PROLJETNI FOND ZIMSKI FOND LJETNI FOND

22. 22 REGISTRATION FORM

23. 23 BUSINESS PROCESSES 3. Collection of information, their processing and monitoring, and sending to interested parties 4. Transfering paid contributions into compulsory pension funds and recording of personal accounts for fund members

24. 24 REGOS (personal accounts) II PILLAR FUNDS TRANSIEN TREGOS ACCOUNT CONTRIBUTORS – PERSONS UNDER PAYMENT OBLIGATION CONTRIBUTION RECORDS

25. 25 BUSINESS PROCESSES 5. Regular and periodical (upon request) reporting to members of compulsory funds, and to other interested subjects, with respect to principle of information secrecy 6. Realization of pension right

26. 26REPORTINGREGOSREGOS REPORTING HZMOMFPU HZZO HZZ FUNDMEMBERS PUBLIC OMF GOVERNAMENT OF REPUBLIC OF CROATIA HAGENA EMPLOYERS

27. 27 PENSION INSURANCE COMPANY PENSION – SECOND PILLAR REGOS II PILLAR FUNDS INSURED PERSONS

28. 28 EMPLOYERS IN REFORMED SYSTEM

29. 29 TANGIBLE POINTS EMPLOYER - REGOS  reporting on membership in compulsory pension funds  (for the insured from 40–50 years of age)  data on contribution per insured person  payment of contribution for 2nd pillar  control of payment and connecting with data

30. 30 REPORTING ON MEMBERSHIP IN THE SECOND PILLAR REGOS STICKER (INFORMATION) GIVEN TO THE EMPLOYER INSUREDPERSON(between 40 and 50 years of age)

31. 31 DATA ON CONTRIBUTION PER INSURED PERSON  Monthly collecting of data through the form R-S (Specification on the insured)  Way of delivery of the REGOS form: electronic way on magnetic media paper form

32. 32 EXPANDING SCOPE OF ACTIVITIES Based on Law REGOS scope of activities will be expand: collection of data about all compulsory contributions, tax and surtax on income transfering data to associated institutions managing function of central accounting

34. 34

35. 35 CIRCULATING SCHEME OF DATA AND PAYMENTS IN THE SYSTEM OF UNIFIED MONTHLY COLLECTION CIRCULATING SCHEME OF DATA AND PAYMENTS IN THE SYSTEM OF UNIFIED MONTHLY COLLECTION PERSON UNDER PAYMENT OBLIGATION TREASURY REGOS OMF TRANSIENTA CCOUNT HZZO HZMO HZZ 4b 2 7 8 9 9 9 COMPETENT INSTITUTION MATCHING AUTHORIZED ORGANIZATION FOR PP 3 4a 5 MFPU 6 1

36. 36 CONTROL OF PAYMENT AND CONNECTING WITH DATA matching data per insured person and joint payments recording and monitoring contribution payments submiting request for compulsory payment

37. 37SUMMARY EMPLOYERS 1.No increasing in their administrative expenses 2.Simply monthly reporting to REGOS from monthly salary calculation per employee 3.Short implementation term into pension system 4.Decrease of reports (RS form instead 11 existing forms) and rationalization

38. 38SUMMARY REGOS 1.Employers reporting on employees between 40 and 50 years of age that are members of pension funds 2.Keeping a file on personal accounts of the insured persons 3.Payment and data prompt control at their entrance

39. 39REMINDER

40. 40 10 REFORM FACTS 1.Insured people up to 40 years of age must register in compulsory pension fund until March 31st, 2002 2.Insured people between 40 and 50 years of age can register in compulsory pension fund until June 30th 2002 3.Registration in compulsory pension fund will be done at REGOS counters in all Croatian ZAP offices

41. 41 10 REFORM FACTS 4.Person under contribution payment obligation must pay monthly 5 % of gross salary for his insured people into system of individual capitalized savings (second pillar) through transient REGOS account 5.Payed contributions are registered on personal account of each insured person

42. 42 10 REFORM FACTS 6. Compulsory pension company (founder and manager of compulsory pension fund) invests collected assets from the personal members account into safety securities and by that it makes return on investment (growth of assets) 7.REGOS at least once a year reports insured person about changes and state on personal account

43. 43 10 REFORM FACTS 8.Insured person can change compulsory pension fund in year 2002 once for free, and latter with regulated compensation. 9.After realization of pension right insured person makes contract with pension insurance company, which according to contract pays him/her lifetime pension. Total pension will be sum of pensions from first and second pillar. 10. For insured persons older than 50 years, way of contributions separation and realization of pension right is not changing.

44. 44 We have been relying on two pillars of pension insurance