Jozef Burian, the State Secretary (i.e. deputy minister) of the Labour Ministry told the Sme daily that the amount that a person can contribute to the country’s so-called second pension pillar, which is privately managed, will be reduced as of January 2013.
Currently an employee can authorise 9 percent of salary to go to his or her second pillar pension account. The contribution rate could be reduced to 6 percent with Burian adding that the contribution rate might be cut to as low as 3 percent.
The ministry representative said the amount will depend on the government’s public deficit consolidation plans since a one percent reduction “could save €100 million for Sociálna Poisťovňa”, the state-run social insurer.
Viktor Kouřil, the head of the VÚB Generali pension fund recently said that if employee contributions to the second pillar are reduced to less than 6 percent, the second pillar would no longer have “any meaning”, Sme wrote.
Compiled by Zuzana Vilikovská from press reports
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