The government approved a draft bill that changes the second pillar re-entry restriction.
Previously, people had to wait 10 years to rejoin. Now 5 years of waiting will be sufficient.
For example, those who left the second pillar in 2021 or 2022 can rejoin as early as 2026 or 2027.
Finance Minister Jürgen Ligi says that 10 years is too long. 5 years is better, but restrictions are still necessary.
Another important change: if a person withdraws money before retirement age, they don't have to take the full amount. They can withdraw only a portion.
After a partial withdrawal, they can start contributing again after 5 years.
If a person has already withdrawn money before retirement age and rejoins, they continue contributing until retirement.
Rejoining the second pillar remains voluntary. The conditions for remaining in the pension system do not change.
The law is expected to enter into force on November 1, 2023.
The partial withdrawal and restart of contributions will come into effect on January 1, 2028.
This change will bring additional costs to the state budget. In 2027, the projected cost is approximately 22 million euros.
According to the Estonian Banking Association, the changes are too rapid. People won't have enough time to familiarize themselves with the changes.