Economists warn against spending money from re-opened second pillar

Ten renowned local economists issued a joint statement criticising the government's plan to reopen the second pillar of pension saving. They suggest that the government's campaign for the capitalisation pillar will destabilise the pension system and its result will not be the desired protection of future pensions but spending funds destined for their payment. The economists say that the government thus should not spend the money it plans to acquire in the opening of the second pillar. The economists recommend that MPs change the Cabinet-approved budget draft for 2009 so that it does not count on revenues acquired from the savings of people who decide to quit the second pillar.

Ten renowned local economists issued a joint statement criticising the government's plan to reopen the second pillar of pension saving. They suggest that the government's campaign for the capitalisation pillar will destabilise the pension system and its result will not be the desired protection of future pensions but spending funds destined for their payment. The economists say that the government thus should not spend the money it plans to acquire in the opening of the second pillar. The economists recommend that MPs change the Cabinet-approved budget draft for 2009 so that it does not count on revenues acquired from the savings of people who decide to quit the second pillar.

Economists from INEKO, HPI, the F.A. Hayek Foundation and other independent think-tanks and institutions explain that the creation of the second pension pillar was intended to diversify sources for financing of future pensions between the local market and global financial markets, thus increasing Slovakia's chances of successfully coping with the aging of the population. The second pillar was to boost the security of the pension system in the long run, they said. SITA

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

The Swedish Radio building.

While Sweden moves to protect journalists more, Slovakia waits for politicians to act

Journalists in both countries are facing more harassment, polls show.


21 h
Jupiter (centre) and its Galilean moons: from left Ganymede, Io, Europa and Callisto. Juice with deployed antennas and arrays is in the bottom right.

From Košice to Ganymede: Slovak engineers are leaving their mark in space

Slovaks are active participants in two ongoing space missions.


20. may
Volt Slovensko will participate in the 2024 European elections.

News digest: New Globsec survey confirms Slovak affinity for Russian propaganda

Police from Roma abuse case to face court again, Germany pulling its Patriot, and an interview with a Nobel Prize winner.


17 h
SkryťClose ad