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Slovakia’s pension system will change again

Eighty MPs supported the amendment to the Social Insurance Act, which will bring more changes to Slovakia’s pension system. The changes will come into effect as of September, this year, one month sooner than was originally planned, the SITA newswire reported on August 10.

Eighty MPs supported the amendment to the Social Insurance Act, which will bring more changes to Slovakia’s pension system. The changes will come into effect as of September, this year, one month sooner than was originally planned, the SITA newswire reported on August 10.

One of the biggest changes will be the decrease of the amount paid into the second private pension pillar, which will drop from its current 9 percent to 4 percent. Yet, as of 2017 the rate is to increase by 0.25 percentage points per year to reach a 6 percent rate in 2024, according to the proposal prepared by opposition MP Ľudovít Kaník from the Slovak Democratic and Christian Union (SDKÚ), which was also supported by Smer deputies.

Moreover, the second pension pillar will be open from September 1 to January 31 for those who want to enter or depart from the system.

In addition to this, the current cost of managing the funds will stay at 0.3 percent in both guaranteed and non-guaranteed funds, even though the government originally planned to double the charge paid for non-guaranteed funds. The deputies disagreed with a suggestion to decrease the fees for operating the accounts, SITA wrote.

The fee for assessing property is also set to change, which will increase from 5.6 percent to 10 percent.

MPs also approved the proposal of former labour minister Jozef Mihál from Freedom and Solidarity (SaS), which allows clients to receive the early pension at 0.6-times the subsistence minimum if he or she has been saving money for at least five years.

Source: SITA

For more information about this story please see: Fico moves to overhaul pensions

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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