Spectator on facebook

Spectator on facebook

NEWS IN SHORT

Pinera considers the first pension pillar a pyramid system

JOSÉ Pinera, creator of the Chilean pension reform that served as a model for the Slovak pension reform, thinks that the first pay-as-you go pillar is a pyramid system based on political promises, the SITA newswire wrote. In his opinion, the state should not function on the basis of a pyramid financial scheme.

JOSÉ Pinera, creator of the Chilean pension reform that served as a model for the Slovak pension reform, thinks that the first pay-as-you go pillar is a pyramid system based on political promises, the SITA newswire wrote. In his opinion, the state should not function on the basis of a pyramid financial scheme.

"It is a fraud since the state does not put aside money for paying the pensions in the future," he said at a press conference during his visit to Bratislava on September 11, claiming also that the state is trying to persuade citizens to believe that they will receive their money.

"What a person saves in his own pension account is more secure than any promise from a politician," he stressed.

After the meeting with Finance Minister Ján Počiatek, Pinera said that, from a short-term perspective, Slovakia should not face any problems in public finance due to the introduction of the second pillar.

"The Finance Minister liked the idea of the reform and I do not know whether there would be any plans to change the main principles of the reform," he said.

He would disagree if 9 percent of the policyholders' gross wage, which is directed to their personal accounts in pension fund management companies, changed four years after the capitalization pillar was introduced. However, he thinks that if the payments into the second pillar dropped to 8 percent, that would not mean the end of the system.

Top stories

Quidditch becomes reality in Slovakia as first teams emerge Video

The wizard sport, fighting for its status in the real sports world, has won the hearts of some Slovaks.

Robert Fico is not Saddam Hussein

It would take too long to list all the crazy distortions the international media presented about Central Europe and the Czech election campaign this week.

Babiš

Top stories from Last Week in Slovakia Video

Voters’ indifference affects regional votes - Can Slovaks be lured back from Britain? - Petit Press majority owner dies

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between October 20 and October 29, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

International Halloween Party