The era of fractional payments for pension funds has begun since October 31, 2026. Members of pension funds can choose to receive their accumulated capital in installments without ties to expected life, with amounts following the progress of the fund's share and higher tax rates compared to other formulas. The COVIP has indicated that funds negotiating, open-ended, and PIP should include it in their statutes, while funds have had to adapt by the end of the year regarding the adjustment procedures. In summary: the era of monthly payment from the pension fund lasts at least five years, with installment periods fixed between months and years set by the fund (Article 11, point 3-Bis, of Law No. 252/2005 and COVIP decision dated June 25, 2026). According to the statutory clauses of the COVIP protocol.

The installment payment era replaces the lump-sum retirement income, cannot be combined with defined-term interest and free withdrawals, once started it becomes irrevocable. On exempted parts, the installment payment era deducts tax from 20% to 15%, based on years of registration, against the capital, interest, and free withdrawal taxes (Article 11, sub-clauses 6, 6-bis, and 6-ter, of Law No. 252/2005). Individuals who transfer their position to another pension fund after at least two years of registration are entitled to make contributions also from their employer's contribution (Article 14, clause 6, of Law No. 252/2005 as modified by Law No. 199/2025).

The new collection method allows for faster completion of the amount than other services. The frequency of installment payments during the era of fractional payment is determined by each fund, even with more alternative options within the limits set by the COVIP decree on June 25, 2026: the interval cannot be lower than the month nor higher than the year. The fund can exclude too close a payment when the single installment would fall below the minimum amount specified in the regulation. An example calculation shows that under the era of fractional payment, the installment amount recalculates every payment, dividing the available funds at this date by the number of remaining installments to be paid because the part not received is compensated with subsequent installments.

This system allows for faster results compared to other forms of collection. In conclusion, pension fund subscribers can choose between installment payment era and other forms of collection, offering them new opportunities to manage their accumulated capital.