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Fees for administration of pension funds likely to change in July

The cabinet has proposed changes to the fees that pension fund management companies can charge savers in the second – or capitalisation - pillar of the pension system.

The cabinet has proposed changes to the fees that pension fund management companies can charge savers in the second – or capitalisation - pillar of the pension system.

The change should become effective as of July 1 this year, the SITA newswire wrote. It stems from an amending proposal to the draft revision to the law on old-age pension saving which Robert Madej, an MP for Smer, the largest party in the governing coalition, submitted at a session of parliament’s social affairs committee.

Originally, the amendment was to have come into force on January 1 next year. The MP
also suggested that the monitoring period to determine the performance-related fee paid to private pension companies be shortened from sixty to six months.

According to the proposed amendment to the law on old-age pension saving, fees will be more closely linked to funds’ yields. The current fee for administration of a pension fund will be lowered from 0.065 percent to 0.025 percent of the net value of the funds in the pension fund. On top of this, a performance-related fee will be introduced. Its size will depend on the degree by which clients’ pension savings grow. SITA

Compiled by Zuzana Vilikovská from press reports
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