Pension reform on track, old-age-pension savings law passed

As of January 1, 2005, Slovak citizens will have the option to assign part of their pension insurance payments to their personal accounts in private asset management companies, news wire SITA reported.

The parliament approved the old-age-pension savings law that introduces the pension system capitalization pillar.

The capitalization pillar funds will be the private property of citizens and will be inheritable in the event of the policyholder's death.

Revenues in the capitalization pillar will not be taxed equally, as pensions in the pay-as-you-go system are not taxed.

The capitalization pillar will only be compulsory for those entering the labour market for the first time in 2005. Other citizens will have the opportunity to decide about pension savings and choose a private asset management company from January 2005 to June 2006.

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

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