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Assets of private pension funds to be transferred to state pillar in single step

Assets of members of private pension funds returning to the state pension system will be transferred in a single step, under a last-minute change to planned legislation on the transfer.

Legislation amended earlier gave private pension fund members until the end of January to opt out of a return, together with their assets, to the state pension system. Only about 3% of private pension fund members decided against the move.

The change to the legislation, on which Parliament will take a final vote later on Monday, makes May 31, 2011 the valuation date for the assets and mandates their transfer in a single step to the Pension Reform and Tax Reduction Fund by June 12.

The change ensures equal treatment of all private pension fund members as their assets are valuated on the same day.

Another change to the planned legislation stipulates that the gross assets - including yields - are to be transferred to the state pillar. The private pension funds have until July 20 to claim back from the state fund the real yield - the yield over inflation on the assets - to be paid to former pension fund members who reclaim the yields.

Former pension fund members may decide to take payment, tax-free, of the real yield on their pension savings under legislation approved earlier.