SLOVAKIA - The Slovak government has proposed minor changes to the investment regulations for second pillar pension funds, to comply with EU legislation.

The European Commission warned Slovakia earlier this month about its policy of limiting some pension fund investments to eurozone countries. (See earlier IPE story: Slovakia faces EC action over non-euro pension stance)

"The current small amendment is changing this and broadens the definition to all EU countries," confirmed Viktor Kouril, chairman of the board at the ING pension fund.

Drafted by the ministry of Social Affairs and Labour, the bill is now heading for parliament.

"From my point of view, the change is very minor and has very limited impact on our companies," said Kouril.

Such developments come at the same time as Slovakia's six second pillar funds have reported an average return of 1.2% for 2009, after regulatory changes last year being limited returns. (See earlier IPE story: Slovak funds see turnaround in Q3) 

Assets in the Slovak funds grew from €2.23bn at the end of 2008 to €2.95bn by the end of 2009.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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