The pension system of the Republic of Croatia was established by a reform that started in 1999. This reform brought about a sequence of important changes that were significant for the first pension pillar - the system of intergenerational solidarity. After that, starting with 2002, second and third pillars also came to existence in the Republic of Croatia and those being mandatory and voluntary pension savings, and earlier this year, a new pension reform was introduced to make the system viable. Third pension pillar, or the voluntary pension saving represents individual capitalized savings in which the person independently sets the frequency and amount. In 2008, there were four companies in the Republic of Croatia which deal with the management of the voluntary pension funds and those effectively manage a grand total of eight open voluntary pension funds and twenty two closed voluntary pension funds. Anyhow, voluntary pension saving is still not that developed in the Republic of Croatia, so for that reason, the State encourages the savings in the third pension pillar by paying the fund members their subsidies from the State budget and tax relief towards their employers.