Public pension fund Social Standart is an (not-for-profit) association of businesses founded and acting based on the Law of Ukraine on Provision of Non-Governmental Pensions and on other regulatory decrees on provision of non-government pensions.

SOCIAL STANDART was founded in June 4, 2004

Founders: OJSC KINTO and CJSC “Kvazar-Micro Techno”

The purpose of the Fund is to provide its participants (own employees and other companies and individuals) with supplementary pensions by attracting funds from potential investors, and future accumulation and growth of these funds by investing in the Ukrainian economy.

Participants: any individual (citizens of Ukraine, foreigners, persons without citizenship)

Contributors: any business entity or individual, who makes pension contributions to the benefit of the fund’s participant

Investment strategy: balanced policy of receiving stable returns under moderate level of risks, aimed at securing assets made by fund's contributors to the benefit of the fund's participants.

“Top-100” ranks SOCIAL STANDART as the second most effective pension fund in Ukraine in 2007.

Reliability of the Fund is assured by:

 an independent annual audit of non-governmental pension activity;

 quarterly reports by the personnel servicing the Fund;

 control by governmental authorities over the activities of the personnel servicing the Fund;

 overseeing of the Fund by the Fund’s Board;

 strict observance of the regulatory requirements and other executive provisions related to the composition and structure of the pension assets.

Five reasons why YOU should participate in the non-governmental pension provision program:

1. tax benefits:

According to the current tax regulations,

a corporate contributor is entitled to the following benefits:

 to treat pension contributions made for the benefit of the company’s employees as company’s gross expenses (which means income tax savings equal to 25% of the amount of total contribution);

 the pension contributions made for the benefit of the company’s employees are exempt from obligatory social security contributions to the Labor Compensation Fund (depending on type of business, this means over 37% savings on obligatory social security contributions);

An individual contributor is entitled to the following benefits:

Pension contributions made for the benefit of oneself or one’s own family members (next of kin) are exempt from individual income tax in the amount equal to the amount of the monthly living wage for the employed individual as established on January 1 of the fiscal year multiplied by 1.4.

2. Implementation of social programs

Through participating in the Pension Fund the corporate contributor will get an opportunity to:

 improve employees’ social security program;

 redistribute for the benefit of the employees’ pension fund, a portion of funds designated for increasing wages;

 allocate a portion of the company’s contractual social liabilities as pension provisions;

 apply the most flexible approaches possible to developing social security packages for different categories of employees with the aim of differentiating the level of pension contributions to the non-governmental pension fund according to the company’s strategy in social security provisions.

3. Re-investment of accumulated pension contributions

A corporate contributor can re-invest a portion of contributions by investing the accumulated funds into securities (shares or bonds) issued by this contributor.

4. Adopting a manpower policy

Through applying various pension mechanisms, the corporate contributor is able to employ differentiated approaches in setting the level (amount) of pension payments to be released to the company’s employees in respect of their age, experience and other indicators of the worker’s value for the company.

Social Standard Open Pension Fund utilizes 9 pension schemes: 6 for corporate contributors and 3 for individual contributors.

5. Protection of the pension fund

By law, the entire accumulated amounts are considered as owned by participants as soon as the contributions arrive in the individuals’ pension accounts. The NPF cannot be pronounced bankrupt. The NPF cannot be held responsible for liabilities of the founders or of those who provide services to the Fund. Recovery of contributors’ liabilities cannot be enforced by way of the NPF. The custodian bank and Financial Services Commission carry out monitoring of the adequacy of the Fund’s utilization and allocation of pension contributions.

Social Standart Public Pension Fund, complying with all legal requirements, is managed by prudent and experienced financial market specialists.

The Fund is serviced by the following professional participants in the financial market:

The pension assets are managed by OJSC KINTO, asset management

Founded in 1992, KINTO is today recognized as a leader in the Ukrainian stock market, being an active player in the stock market’s establishment and development. Carrying out asset-management activities for investment funds and non-governmental pension funds, KINTO offers the expertise, competence and experience of its team of professionals as well as a wide range of investment strategies.

Administrator of the Fund: Centre of Personified Records — a company set up by Kvazar-Micro Techno. (Limited Liability Company “Administrator of pension fund "Centre of personificate processing"); Kvazar-Micro Techno is one of the largest IT-companies and leading developer of solutions and service-providers in information, communications and management technologies. The company is ready to provide modern software for supporting operations of non-governmental pension funds.

Custodial of the Fund: OJSC Piraeus Bank ICB

OJSC Perious Bank ICB licensed for depository activities of securities custodian by State Securities and Stock Market Commission has been operating in financial markets for more than 18 years. Since 1999, the Bank is subject to annual financial audit in compliance with international accountancy standards. In 2008 the bank changed its name for OJSC Piraeus Bank ICB, as part of the biggest Greek banks Piraeus Banks SA, with wide international network and regional network in Ukraine.

The Fund is registered in the register of the financial institutions of Ukraine (registration number 12100593) as an institution authorized to provide services on the non-state pension provision. (Certificate No. 11 as of 19.10.2004).

For queries or help please contact our consultants Ms. Oksana Stoianova, Ms. Olga Melykh on tel. +380 44 246 73 50, 246 76 41