ESTONIA - The Estonian government has approved a bill aiming to increase transparency in the second pillar and adding a number of new investment rules.

The bill drafted by the finance ministry will require pension funds to submit reports more frequently, restrict investments in some securities and make changes between pension funds more flexible.

The proposals have now been approved by the government, which stressed it did not want to propose a "fundamental restructuring" of the pension system.

There will also be a "restriction on property investments" for conservative funds - those with a low equity quota - but no further details were provided.

Additionally, employer contributions to third-pillar schemes will be deductible up to approximately 15% of an employee's income.