The legislative changes made to the second (capitalisation) pension pillar in Slovakia introduced last year by the Labour, Social Affairs and the Family Ministry were aimed at making the second pillar more attractive, Labour Minister Viera Tomanová said after a government session on April 14, the TASR newswire reported.
She was reacting to a central bank report on financial markets in 2009 released earlier this week which said that investments by pension fund management companies (DSSs) last year were shifted to more conservative portfolios.
“Nothing changed in the system of investing. It’s DSSs' problem that they became more restrained; nothing is forcing them to invest the way they are doing,” said the minister, as quoted by TASR.
The NBS report noted that the strict indemnification regimen placed on the DSSs vis-à-vis higher risk investments persuaded them to sell off portfolios that, as it turned out, were relatively more profitable, TASR wrote.
“It's the crisis, and it was necessary to react to it. We reacted with the aim to ensure a larger volume of money for savers,” the labour minister said.
Compiled by Zuzana Vilikovská from press reports
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15. Apr 2010 at 10:00