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Goverment floats private pension reduction proposal

A new proposal could mean that the 1.6 million people who are saving for their pensions in the private second pillar of the system won’t be able to save as much money this way, the Pravda daily reported on September 8.

There have been reports of talks between the private pension companies, the Finance Ministry and the National Bank of Slovakia (NBS) about a possible cut in salary contributions to the second pillar from the current nine percent to six percent.

The rest of the salary contributions would go to public social security provider Sociálna Poisťovňa (SP) - the first pillar of the system.

People who have signed up to the second pillar currently pay nine percent to SP and another nine percent to the private pension-savings company of their choice.

"The cut in deductions to the second pillar would be temporary,” said Tom Kliphuis from ING Insurance Central Europe. “Within three years, they would return to the nine-percent level."

-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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