AIG pension fund avoids zl. 110,000 fine as it is cleared of irregularities

The Supreme Administrative Court (NSA) has exonerated AIG Pension Fund from charges of operational irregularities. Thus, the company will not have to pay the Pension Fund Supervisory Office (UNFE) the zl. 110,000-fine it was sentenced to in December 1999. The fine was levied because of irregularities in the transfer of 200 AIG members to other pension funds. The law in operation at the time said the fund had to prepare a transfer list first, before transferring members. UNFE says AIG violated regulations as some people were enrolled too late, appearing on the transer list after they had already been transferred. Of those transferred, 75% had no money in their accounts, but could earn income on the accounts between the time they changed the fund and the moment the list was prepared. NSA's interpretation of the regulation is transfers only officially take place when a person's name is put on the transfer list and not earlier. It says both AIG and UNFE did not read the regulations carefully enough. Under the new regulation, the date of the transfer is to be put on client' information forms. (Prawo i Gospodarka, page 9) J.K.