Beginning next year the fees charged by private pension fund management companies (DSSs) will consist of two parts - one fixed and the other variable, according to an amendment to the Pension System Act that was approved by the government on Wednesday, March 4 the TASR newswire wrote.
Additionally, the fixed fee is to be lowered from its current rate of 0.065 to 0.025 percent of the assets under management. The variable part of the fee will be dependent on increases in the value of participants’ savings. The amendment is set to be discussed by Parliament next week according to TASR.
“The principle is very simple. If you manage to increase the value of people’s money, you’ll get your fees,” said Prime Minister Robert Fico after the government session. “If you don’t increase the value of people’s money or if you’re even unable to guarantee the amount that people have deposited, you’ll have to pay for the difference to equal the level of the capital sum,” he added.
“We have now focused on the protection of participants, because DSSs don’t care whether the value of people’s money increases. This I can tell you with the reliability of a Swiss watch. What they care about is receiving their fees,” he added, as quoted by TASR. TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
5. Mar 2009 at 14:00