Slovak government to scrap restrictions in second pension pillar

The Labour, Social Affairs and the Family Ministry on February 8 submitted an amendment to the Old-Age Pension Savings Act - a move taken in response to reservations expressed by the European Commission (EC) towards certain investment restrictions applied to pension funds in the so-called private, second pillar of the pension system, the TASR newswire wrote. “The criticised shortcomings have been corrected and the discriminatory factors removed by the proposed changes, which loosen investment conditions, as well as create wider scope for investments outside the eurozone,” reads the document submitted by the ministry for comments.

The Labour, Social Affairs and the Family Ministry on February 8 submitted an amendment to the Old-Age Pension Savings Act - a move taken in response to reservations expressed by the European Commission (EC) towards certain investment restrictions applied to pension funds in the so-called private, second pillar of the pension system, the TASR newswire wrote.

“The criticised shortcomings have been corrected and the discriminatory factors removed by the proposed changes, which loosen investment conditions, as well as create wider scope for investments outside the eurozone,” reads the document submitted by the ministry for comments.

The EC had expressed its reservations towards regulations that currently give the Slovak central bank (NBS) power to restrict a private pension fund to investing only up to 50 percent of the value of its net assets in securities issued or guaranteed by eurozone-member states. According to the EC, such a regulation is at odds with EU legislation, especially in terms of the free movement of capital.

The proposed amendment broadens the investment options vis-a-vis the securities of all EU-member states, including those in which the euro is not the legal tender, to 50 percent. The current limit for investments in countries without the euro is 20 percent. In order to reduce investment risk, the amendment introduces a condition that negotiable securities should be denominated in the same currency in which the value of pension fund is expressed.

The EC's requirement was communicated on January 28 in the form of a so-called reasoned opinion, which represents the second phase of infringement proceedings, TASR wrote. According to the EC, the current version of the law, which was criticised by EC for the first time in June 2008, allows relevant state bodies to discriminate against investments in securities issued or guaranteed by EU-members states that do not belong to the eurozone. 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.

Get daily Slovak news directly to your inbox

Top stories

Testing is impossible to carry out as planned, president says

President Zuzana Čaputová asked the government to reconsider measures for people who do not get tested, many will not get a chance.

President Zuzana Čaputová met with the representatives of the armed forces.

The big test is upon us. What are we to do?

For a foreigner living in Slovakia, there is yet another concern.

Health care professionals still lacking ahead of Saturday's testing

Government avoids mobilisation for now, PM offers an extra bonus to health care professionals who can serve the whole weekend.

Dolný Kubín

News digest: Who will take the swabs?

The government offers hundreds of euros to health care staff for testing. Curfew ends on Saturday for some. Take a look at testing sites and more.

PM Igor Matovič helped with testing in Tvrdošín.