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ADSS: proposed amendment to pension system legally problematic

The Labour Ministry's proposed amendment to the Social Insurance Act, which will change Slovakia's pension system by reducing the role of the private Second Pillar, is problematic from the legal standpoint and unprofitable in economic terms.

These are the conclusions of an analysis carried out recently by the Association of Pension-savings Companies (ADSS). The findings were presented by ADSS representatives at a press conference on August 14.

"It would create groups of pension savers with different rights, and would retroactively effect legal relations between the saver and the pension-savings company," ADSS chairman Peter Socha said.

Although it is accurate to assume that state-insurance provider Sociálna Poisťovňa would receive more funds if fewer people participated in the Second Pillar, the amendment does not provide a long-term solution, the analysis states.

"Socialna Poistovna would have to spend more money on paying out pensions, which would eventually lead to considerably higher deficits. The current system, despite being expensive, is the cheapest of all (options)," Socha said. TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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