Net equity of households in pension funds reserves (F.612)

5.110 Definition:

The sub-position net equity of households in pension funds reserves (F.612) consists of all transactions in net equity of households in pension funds reserves (AF.612) that is technical provisions held by autonomous and non-autonomous pension funds established by employers and/or employees or groups of self-employed to provide pensions for employees or self-employed.

5.111 Transaction in net equity of households in pension funds reserves consist of additions less reductions, which are to be distinguished from nominal holding gains or losses on the funds invested by pension funds (see paragraph 6.57.).

Additions consist of:

  1. actual contributions into pension funds payable by employees, employers, self-employed or other institutional units on behalf of individuals or households with claims on the funds and earned during the current accounting period;
  2. plus contribution supplements corresponding to the income earned from the investment of the provisions of the pension funds, which are attributed to participating households;
  3. less service charges during the period for managing the funds.

Reductions consist of:

  1. social benefits equal to the amounts payable to retired persons or their dependants in the form of regular payments or other benefits;
  2. plus social benefits which consist of any lump sums payable to persons when they retire.

5.112 Transactions in net equity of households in pension funds reserves do not include funds transferred from non-autonomous pension funds to autonomous pension funds, classified in the sub-sector insurance corporations and pension funds (S.125), as a result of the conversion of one fund into another This event is to be recorded in the category changes in sector classification and structure (K.12.1) of the other changes in the volume of assets account (see paragraph 6.30.).

5.113 Pension funds reserves are financial assets of resident or non-resident households but not financial assets of the institutional units that manage them.