Second-Pillar Pension Opt-Out: Key Payroll Obligations Before September 30

As the third quarter of 2026 draws to a close, the State Social Insurance Fund Board (Sodra) highlights the transitional rules governing the second-pillar pension system. Participants wishing to withdraw from second-pillar pension accumulation and receive their funds in early October 2026 must submit an application to their pension management company by September 30, 2026.

Pension management companies process opt-out applications on a quarterly basis. Requests filed on or before September 30 are fulfilled within the first 10 business days of the following quarter, with payouts disbursed in early October. Applications received later (between October and December) will only be processed in early January 2027. This transitional withdrawal window remains available from January 1, 2026, through December 31, 2027.

For employers and payroll accountants, the critical operational rule is that submitting an exit application does not automatically stop contribution deductions. The 3% pension contribution must continue to be deducted from the employee's gross salary and declared via regular SAM reports until the pension fund officially confirms contract termination or the employee files a separate request to suspend contributions.

An employee's verbal statement regarding an application submitted to a pension fund does not authorize payroll to modify wage withholding. Deductions may be adjusted only upon receiving official updates within the employer's Sodra portal or upon receiving verified written proof that a contribution suspension request has been granted.

Upon withdrawal, the individual receives only their personal contributions along with accrued investment returns transferred directly to their bank account. The State Tax Inspectorate (VMI) confirms that these disbursed sums are exempt from personal income tax (GPM) and are not subject to further deductions.

State co-financing contributions and historic transfers from Sodra are not paid out to the individual. Instead, these amounts return to the social insurance budget and are converted into pension insurance units for future statutory retirement benefits. In 2026, acquiring one pension accounting unit requires 2,419.43 euros in pension social insurance contributions.