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Labour Ministry says cut in contributions to second pension pillar expected

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.

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.

Source: Sme

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

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