THE SIX pension fund management companies (DSS) operating in Slovakia succeeded in growing the savings of about 1.5 million savers in the last six months and thus earned additional payments that they are entitled to from the proceeds. Together, they received over €150,000 from the yields, the Pravda daily reported.
“Even with these payments for the appreciation of pension savings, however, the overall sum [we received] was lower than before the change in legislation,” said Vladimír Šošovička, the board director of the ČSOB DSS, Pravda reported. “That cut the payment for the administration of a pension fund from 0.065 to 0.025 percent of the average monthly value of the assets in the fund as of July 2009.”
The changes mean that the DSSs are now entitled to an additional payment for appreciation of funds, which each DSS gets only if it achieves a set level of growth in the savings that its fund manages.
In the event that the value of savings depreciates the pension fund management company is obliged to make up the difference to clients from its own funds. As a result, most DSSs have since shed almost all their holdings of high-risk, high-growth shares, Pravda reported.
18. Jan 2010 at 0:00 | Compiled by Spectator staff