Prime Minister Robert Fico said on Thursday that submitting the draft constitutional bill on protection of the current saving system in the second pension (capitalization) pillar was tantamount to a crime. "It is a crime comparable with the privatization of the gas utility Slovensky Plynarensky Priemysel," stated Mr. Fico in parliament during Thursday's Question Hour. The Prime Minister simultaneously pointed out that no warranties exist to guarantee the volume of yields on pension savings. Yields in the conservative and balanced funds are below the inflation rate. Only yields in growth funds reach the level of Slovakia's inflation, he alleges.
Mr. Fico also remarked that if pension fund management companies achieve a loss from saved principal of investors and they did not breach the law, but only made a wrong investment decision, there is nothing that could force them to compensate for the damage. Only a court can decide on eventual damage compensation.
The prime minister named three options. The first alternative is to open the system for a certain period, during which policyholders would decide whether to remain in the second pension pillar, since not all entered the capitalization pillar willingly. The second option is the creation of the fourth fund, which would guarantee that savers receive at least the equivalent of their savings. The third option is to force the parent companies of pension fund management companies to assume responsibility for potential damages.
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