BRATISLAVA, February 7, (WEBNOVINY) – The strongest opposition party SMER-SD has introduced its proposal of changes to the current pension system. As its representatives informed on Monday, their goal is to preserve protection of the savers but want also to think of those who are willing to undergo some risk in their saving. According to SMER-SD Deputy Chairman Peter Kazimir, they will soon introduce the respective piece of legislation.
SMER-SD shadow minister for social issues Zuzana Zvolenska informed that one of the changes should be the merger of the three existing pension funds – the growth fund, balanced fund and conservative fund – into one guaranteed fund. According to her, from the practical point of view, this is a better solution than mass shifts of the savers from fund to fund. Moreover, she funds this solution more economical compared to preserving all three funds. The fees in such fund would stay at the present level. At the same time, unguaranteed bond and equity funds should be created. Zvolenska considers it important that only savers with sufficient information join the unguaranteed scheme, as according to surveys more than 50 percent of savers lack the basic knowledge on investing. She also claims that 80 percent of savers do prefer investing without risk. The proposal would also introduce the possibility to invest part of the savings in the guaranteed fund and part in the bond and equity funds.
Ministry of Labor, Social Affairs and Family spokeswoman Slavomira Selesova said that the Ministry is familiar with the philosophy introduced by SMER. One of the possible changes to the second pillar might be the introduction of a super-equity fund without any guarantees, but with the possibility of investing in shares and bonds, whereas the present three funds would keep their guarantees. “In the case of such scenario, we do not resist their merger under specific conditions. However, it is only one of the possibilities,” she added.
SMER-SD Peter Kazimir also commented on the proposal on financing construction of highways from the second pension pillar savings through special highway bonds. He considers this option to be too complicated and would thus prefer a direct purpose loan of the pension fund management companies to the state.
SITA