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Schuster vetoes part of pension law

PRESIDENT Rudolf Schuster vetoed the law on Social insurance that constitutes part of the cabinet's new pension law.

The law, passed by MPs on September 24, will change the current pay-as-you-go pension insurance system of the social security provider Sociálna Poisťovňa (SP) and establish a so-called capitalisation pillar, in which employees divert part of their wages into pension accounts with private asset-management companies.

To overrule the veto, 76 MPs must support the legislation. The ruling coalition currently has a formal strength of 75 out of the total 150 MPs.

But the coalition representatives, as well as officials with the Labour Ministry such as Deputy Labour Minister Michal Horváth, are optimistic that the law will be passed. Opposition parties said they would not back the law, but independent MPs could vote in favour of the act.

According to the president, the law's provisions would have a negative impact on the weaker layers of society.

If the law were not passed it would result in an increase of the planned 2004 deficit that the draft state budget for next year foresees at 3.9 percent of the GDP. The state budget was produced counting on the passage of a series of the cabinet's changes, including the new pension law.

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

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