Government transfers CGD pension fund to CGA

 In Banks, News, Pensions

The Portuguese government has confirmed that it has transferred the pension fund of public bank Caixa Geral de Depósitos to Caixa Geral de Aposentações for €3Bn.

The decision enshrined in a decree-law was approved by the Council of Ministers after dissolving the Caixa Geral de Depósitos Staff Pension Fund, transferring all of its responsibilities to Caixa Geral de Aposentações at the same value”, states the government after a meeting of the Council of Ministers on Thursday.
The transfer is merely a transfer and does not involve other assets held by the fund, the monies of which simply passes to the balance of the public bank.
The Ministry of Finance has assured that the rights of current and future beneficiaries of the pension fund are safe: “The current conditions for the beneficiaries remain the same.
Those who are subscribed to the CGA are mostly public sector and administration employees – both local and regional – school teachers, and the employees of some public companies and former public companies that have been part of wholly privatised.
The more than €3Bn that CGA will net from the transfer will be invested in public debt on the back of a State financing programme for 2023. The total number of beneficiaries stands at around 14,000 employees. CGD pension fund had 13,700 beneficiaries. Of these 3,909 are employees and 9,759 are retired according to the Ministry of Finances.