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Decree Law No. 127/2017


Publication: Republic Diary No. 194/2017, Series I of 2017-10-09
  • Issuer: Finance
  • Diploma Type: Decree Law
  • Number: 127/2017
  • Pages: 5603 - 5607

Summary in plain english

What is it?

This decree-law defines new rules for:

  • insurance and reinsurance
  • pension funds and pension fund managers.

Reinsurance is a way to transfer some of the risk from one insurer to another company, the reinsurer. An insurance company will purchase an insurance policy from other insurers to spread out the risk of insurance they provide to their own clients.

Pension funds are funds created to guarantee pension payment. They can be financed by pension contributions from companies and pension contributions from workers. The fund’s assets are composed of securities (stocks, bonds, etc.) or real estate.

What will change? Rules on insurance, reinsurance and pension funds will be clarified

This decree-law clarifies and corrects some of the existing rules to make it easier to understand and enforce of the law.

Pensions paid by pension funds will now be easier

Pensions can now be paid directly by pension funds, including:

  • defined contribution plans, if the beneficiary agrees and within the limit of their individual account
  • in case of pension fund cancellation.
Sufficient funds will be required to to ensure obligations

New rules are defined to ensure a greater financial capacity of pension funds to fulfil their responsibilities.

What are its benefits?

This decree-law is intended to:

  • make it easier to interpret and apply insurance, reinsurance and pension fund laws
  • ensure greater security and certainty in law enforcement
  • increase the possibilities of direct pension payment by pension funds
  • give beneficiaries a wider range of choices to decide how they want to receive the benefits of their pensions
  • increase justice and economic rationality in pension related decisions
  • reinforce the protection of the beneficiaries' interests.
When does it come into effect?

This decree-law comes into effect on 1 January 2018.

Original Version

LEGAL TRANSLATOR

  • Legal translator is the translation of texts within the field of law

CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.