The head of the pension fund which allegedly purchased an overpriced bond resigned yesterday as the government prepared to unveil measures today aimed at safeguarding pension fund investments.

Agapios Simeoforidis, the head of the Civil Servants' Auxiliary Pension Fund (TEADY), tendered his resignation after a Labor Ministry probe concluded that the fund's board had been responsible for paying -5 million too much for a bond.

Labor Minister Savvas Tsitouridis had demanded Simeoforidis stand down. The government wants to limit the political damage that any revelations about pension fund investments could have. Simeoforidis is the son of New Democracy's former general manager and the government has appointed many pension fund board members.

PASOK slammed the government for not overseeing the funds' investments. The Socialists called for Tsitouridis to resign amid allegations about another damaging bond purchase by four pension funds.

However, sources said that the prime minister has offered Tsitouridis his support. Alternate government spokesman Evangelos Antonaros said that the responsibility for any questionable investments rests solely with the boards of the pension funds.

In a bid to deter further criticism, the ruling conservatives are set to reveal today several measures to protect pension funds' finances. They will also begin an investigation into the investments made by the funds over the last 10 years.