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Parliament approves minimum pension

SLOVAK pensioners will be guaranteed a minimum pension as of this July. 

(Source: SME)

This stems from the amendment to the law on social insurance which the parliament approved on May 13.

Under the new rules, the social security provider Sociálna Poisťovňa will pay the minimum pension to everyone who has worked and paid old-age pension insurance for at least 30 years and reached the retirement age. The sum for them will amount to 136 percent of the subsistence level, which is €269.5 a month this year. The pension will increase every other year of the old-age pension insurance by 2 percentage points, and after 40 years of old-age pension insurance by 3 percentage points. This means that those having old-age pension insurance for 45 years will receive €340.8 a month, the SITA newswire reported.

Read also:Fico debuts minimum pension plan

The minimum pension of those who saved also in the second, private pillar, will be reduced while the reduction scheme will be based on the ratio of their payments into the first and second pillar during the years they paid old-age pension insurance premiums.

People receiving the minimum pension should not have to ask the labour offices for the material need benefit. The sum they will get should be by €10-€23 higher than the one that pensioners receiving material need benefit obtain, as reported by SITA.

Moreover, the minimum pension will be valorised every year, based on the subsistence level sum.

It is expected that about 75,000 pensioners will receive the minimum pension this year. The measure will cost €16.4 million in the second half of this year, and €31 million in 2016, SITA wrote.

The parliament did not adopt the amending proposal of Ivan Švejna of Most-Híd to allow pensioners to move their savings from the second pillar to the account in Sociálna Poisťovňa. Such provision would “save” potential losses of the second pillar and would remove discrimination towards those saving their money there. Every pensioner should get the same minimum pension, Švejna said, as reported by SITA.

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