Spectator on facebook

Spectator on facebook

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.

Top stories

Enough of Smer, people chanted in streets Video

Government resignation is not enough, the crowd called for early elections. This is how it looked like in Bratislava on March 16.

Fico fell. These are good, not perfect, developments

Unlike Kaczyński’s case there are two other parties in the coalition with Smer who can still bring the government down at any time.

Media are the ultimate frontiers in defending freedom in society today

Miklós Haraszti’s keynote speech at the Budapest award ceremony of the European Press Prize, March 14, 2018.

Fico is going. So why does the crisis continue?

These 10 answers will help you understand why the coalition’s decision to rebuild the government from scratch does not satisfy the critics and protesting masses.

Most-Híd chair Béla Bugár comes to the Government Office, March 13.