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
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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