Government Okays Option of Investing Money from Second Pillar in Infrastructure

Bratislava, April 7 (TASR) - Pension fund-management companies will be able to use assets from the second (capitalisation) pension pillar to invest in the Slovak economy, according to an amendment to the law on old-age pension savings sponsored by the Labour Ministry and approved by the government at its extraordinary session on Monday. At the same time, the government recommended that Parliament should deal with the amendment via a fast-track legislative procedure. Pension fund-management companies could be able to invest in infrastructure projects that would bring economic or social benefits to Slovakia. "The total volume of assets under the administration of pension fund-management companies was some €16.6 billion in early April 2025. Slovakia currently lacks the financial tools suitable for direct financing of more demanding infrastructure projects," stated the ministry in an explanatory report. According to the ministry, pension fund-management companies currently place assets from pension funds mainly in equity investments that reflect the development of the global economy, especially non-guaranteed index-based pension funds, with a significant portion of pension fund assets focusing on the US, and to a lesser extent on Europe or developed Asian markets. The Labour Ministry wants to redirect part of pension fund investments to Slovakia via this amendment. "Based on this amendment, pension fund-management companies would be able to use pension fund assets to finance the development of the real economy in various, even more demanding infrastructure projects in Slovakia, such as constructing real estate intended for rental housing, building up or modernising the public transport network and energy network, and green infrastructure," stated the ministry. ko/df