First Reading of the Draft Act on Amendments to the Funded Pensions Act and Other Acts (464 SE)
Session: 15th Riigikogu, 4th sitting, plenary sitting
Date: 2024-09-24 13:01
Participating Politicians:
Total Speeches: 29
Membership: 15
Agenda Duration: 18m
AI Summaries: 29/29 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated the first reading of Bill 464 on amendments to the Funded Pensions Act and other acts, initiated by the Government of the Republic. Minister of Finance Jürgen Ligi introduced the bill, the objective of which is to make placing money into the II and III pillars more convenient and efficient, thereby increasing the growth of pension assets and the volume of long-term investments. The main amendments concerned simplifying the inheritance of II pillar assets, allowing heirs to transfer the inherited amount directly to their pension fund or investment account based on a single application. Additionally, the conditions for closing the pension investment account were specified, and the option for partial exchange was added for III pillar insurance contracts. In the round of questions, a lively discussion arose regarding the flexibility of partial withdrawal of inherited assets, which the Pension Centre had referred to as a solution creating excessive administrative burden. Minister Ligi defended the flexibility, emphasizing that it helps maximize the amount of money remaining in the pillar. The lead committee, the Finance Committee, proposed concluding the first reading, which was also decided by consensus.
Decisions Made 2
The first reading of Bill 464 was concluded.
The deadline for the submission of amendments was set as October 8th at 5:15 PM.
Most Active Speaker
Rain Epler was an active questioner, repeatedly focusing on the administrative burden and the reasonableness of the flexibility involved in the partial withdrawal and transfer of inherited property (the so-called "piecemeal division"). He posed questions to both the minister and the representative of the lead committee.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi opened the agenda and announced the first item: the first reading of Bill 464, the Act on Amendments to the Funded Pensions Act and Other Acts, submitted by the Government of the Republic. He stated that the presenter would be Minister of Finance Jürgen Ligi, that the presentation time was limited to 20 minutes, and that up to two questions could be asked of each presenter. He also noted that the committee report was available and that the floor was open for debate by the factions.
Rahandusminister Jürgen Ligi
AI Summary
The aim of this draft bill is to make investing in the II and III pillars more convenient and efficient by offering simplified beneficiary options, partial switching and transfers between pension funds and pension investment accounts, and by adding clarifications stemming from EU legislation.
Aseesimees Toomas Kivimägi
AI Summary
He thanks them and states that there is one question—no, wait, two already—and then calls Aivar Kokk forward.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk notes that while many proposals were made regarding the draft bill, only one was taken into consideration. He then asks whether the remaining proposals were inadequate and whether the banks also agree with the draft bill.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that attempts have been made to review the proposals substantively, and they will be taken into account as much as possible; if necessary, the justification can be read out, and some amendments have been excluded from the draft bill or will be taken for additional analysis.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi asked Rain Epler to take the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asks why the ministry rejected the Pension Centre's recommendation to limit the flexibility of inherited assets, and instead increased people's options for managing the inheritance, despite the fact that most people prefer to withdraw the money.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasizes that as much of the accumulated money as possible should be kept within the second pillar and used for paying pensions. He explains the choices available to heirs—taking the entire asset or just a part—noting that a partial payout is preferable to cashing out the entire sum. He also points out that without an heir, the only options are all or nothing, and if only a portion of the money is utilized, it will not be possible to make additional contributions for ten years.
Aseesimees Toomas Kivimägi
AI Summary
This is the first reading debate, where it is noted that the deadline and location for submitting amendments are still pending. Furthermore, the Government of the Republic will decide whether or not to take into account the remarks and proposals made during the consultation process.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller asked whether it is possible for the heir to directly transfer money between Pillar II and Pillar III (e.g., from Pillar II to Pillar III or vice versa) without withdrawing it, in order to avoid additional bureaucracy.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that it is technically possible to withdraw money from Pillar II and transfer it to Pillar III, but taxation rules apply, and tax-exempt transfers are restricted starting from a certain age or in the case of a specific annuity. Furthermore, the withdrawal itself depends on the person making the withdrawal and the timing.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Leo Kunnas to speak.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas asked exactly what changes Section 2 of the draft bill introduces to the amendment of the Investment Funds Act, specifically concerning investment in precious metals.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that pension funds are generally permitted to invest in precious metals, but the pan-European pension product includes a restriction prohibiting investment in precious metals.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi invites Martin Helme to speak.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that the release of the II pillar pension funds brought a better life, but the liberal regime has utterly ruined the Estonian economy. He points out that, according to the IMF, Estonia is now in the world's deepest, longest, and most persistent recession, and he asks ironically what the average person is supposed to eat—canned goods, grass, or hay—when a minister's salary is over 7,000 euros.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the minister's salary is smaller than the salary of the chairman of a Riigikogu faction, but sufficient for buying food, and he bought cheaply during the energy crisis and is satisfied with that, adding that the draft law does not concern placing money into canned goods.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi thanked the previous speaker and invited Martin Helme to take the floor.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme points out that the head of the parliamentary group and the minister have a decent salary, while simultaneously asking what the average person does with their minimum wage and what they eat.
Rahandusminister Jürgen Ligi
AI Summary
He/She emphasizes that both he/she and the average person eat the same ordinary things, and there is nothing unusual about that.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Aivar Kokk to take the floor.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks regarding the draft bill how the assets of the Second Pillar received as an inheritance should be transferred – whether they can be moved to the Third Pillar or must remain in the Second Pillar.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi said that the bill does not address moving money between the II and III pillars, but that if the matter is discussed, the technical differences related to the two pillars are worth considering, and according to him, your party is still fighting for there to be no money in the pension pillar at all.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi offers his thanks and confirms there are no further questions, then asks Priit Lomp, a member of the Finance Committee, to present the lead committee's positions and decisions from the Riigikogu rostrum.
Priit Lomp
AI Summary
The Finance Committee discussed the preparations for the first reading of the draft bill, received an overview of the amendments from the Minister of Finance, and adopted three consensus decisions: the draft bill will be added to the plenary session agenda, the first reading will be concluded, and Priit Lomp will be designated as the lead rapporteur. The discussion covered pan-European pension products and issues concerning transferability to heirs, and further clarifications are expected during the second reading.
Aseesimees Toomas Kivimägi
AI Summary
At the end of the speech, questions will be taken, and Rain Epler is asked to respond.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He/She asks whether there was a discussion in the commission regarding the sensibility of having such flexibility to divide the inheritance in portions—some in cash, some allocated to one specific location, and some elsewhere—and requests the personal opinion of a young, hardworking individual on the matter.
Priit Lomp
AI Summary
Priit Lomp said that although the commission did not require a detailed discussion, and he provided an exhaustive overview, the solution is reasonable because the inheritance can be transferred in two ways: taking out one part and transferring the other part to the pension fund. Otherwise, the entire sum would be taxed, and only later could the remaining portion be directed, for example, into the III pillar, which provides flexibility.
Aseesimees Toomas Kivimägi
AI Summary
Thank you very much, there are no further questions; I open the debate and I close it; the leading committee's proposal is to conclude the first reading of Bill 464; the first reading is concluded; the deadline for submitting amendments is October 8th of this year at 17:15; we have concluded the proceedings for the first item on the agenda.