Pension funds oppose plans for changes in second pillar

THE ASSOCIATION of Pension Fund Management Companies (ADSS) is concerned that possible changes to the capitalization pillar of the pension scheme prepared by the government might contradict the philosophy of the system.

ADSS chairperson Zuzana Adamová said that such measures could threaten the stability of the second pillar and could harm the interests of more than 1.5 million pension savers. She thinks that instead of allowing pension savers to leave the second pillar, a better solution would be to make entry into the system voluntary. She said that ADSS had agreed on such a solution with the Labour Ministry.

Private pension fund management companies strongly oppose the ruling coalition's plans to change the ratio of contributions that people pay to the second pillar in favour of the state-run pay-as-you-go scheme.

Adamová insists that the pension system should be viewed in a long-term perspective that goes beyond one or two election terms. She pointed out the unfavourable demographic development in Slovakia. "If the state did not carry out pension reform, financing pensions from the first pay-as-you go system would not be very easy in the future," she said.

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