Slovak News Back to the news
Most-Hid Unveils Proposed Changes to Second Pension Pillar
Monday 08 March 2010 Zoom in | Print page
Bratislava, March 8 (TASR) - Extraparliamentary party Most-Hid unveiled its proposals on Monday to make changes to the private second pillar of the pension system under which people can put part of their salaries into personal pension-retirement savings accounts.
The party's vice-chairman Ivan Svejna said that young, new entrants to the labour market should be required to save in personal pension accounts automatically. "In addition, these savers should be allowed a one-year statutory period during which they could weigh up the merits of staying in the retirement pillar," he told reporters.
Another proposal is to revise compensation for pension companies for managing accounts, which last year was cut from 0.065 percent to 0.025 percent of total net assets held in a pension fund. The party claims that the new level fails to cover pension-management costs and adversely affect companies' bottom line. According to Most-Hid, the amount of compensation should be corrected depending on the fund's expenses.
Svejna spoke in favour of replacing the six-month period over which the performance of companies is measured with a three-year period. The current six-month period is too short to provide a yardstick on whether savers' money is being well-managed.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
