Results achieved by the pension fund depend on how well they are managed or more specifically – on whether all decisions taken by the management are in favour of the fund participants. The goal of this paper is to examine how to harmonize interests of second pillar pension fund participants and fund managing company shareholders.An interview with executives of all pension funds managing companies was performed twice – in 2011 and 2016. The answers allow to make conclusions about possible conflict of interest in pension fund management and measures taken by the companies and the state to minimize the risk. A survey of 507 pension fund participants was performed in order to obtain information on participants’ attitude and expectations. Despite the fact that most of participants are dissatisfied with the pension fund performance results, they would not agree to allocate additional resources to hire more competent managers.To protect the interests of pension fund participants the stability of the pension accumulation system as a whole must be ensured. Also it is important to promote mutual confidence of all interested parties, to provide participants with easily understandable information, reflecting real performance results.
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