Spectator on facebook

Spectator on facebook

Second pillar closes for fourth time

PROBABLY the largest number of people have left the private second pension pillar during its fourth open period.

(Source: SME)

June 15 was the last day on which people could join or leave the second pillar. They have been provided with the opportunity to do so between March 15 and June 15.

“I fully respect savers’ decisions,” said Labour Minister Ján Richter, as quoted by the TASR newswire. “[The second pillar] is beneficial for those who can save in it for at least 25 years and whose income exceeds the national average.”

He went on to say that it is the responsibility of every individual saver as to how they have considered the benefits of remaining in the second pillar.

“I respect their decisions,” Richter added, as quoted by TASR. “It’s not a one-off decision, because pensions aren’t paid for one year, but for 19-20 years on average.”

The money of people who have decided to withdraw from the second pillar will be transferred back to state-run social insurer Sociálna Poisťovňa. Its deficit is being covered from the state budget in the long term.

“It’s logical that the more savers there are in the second pillar, the higher the need to cover the deficit,” Richter said. “But later it will become advantageous for the state ... as savers will be leaving the second pillar with saved resources, provided that they have invested well.”

According to the opposition, preliminary data shows that people have not been leaving the second pillar in high numbers, which means that they trust it.

Richter said that he would be pleased if those who have been recommended by the government to leave the second pillar for their own benefit have done so. An analysis of exits from the second pillar should allegedly be ready next week.

The labour minister also pointed out that the government has not invested in any campaign to encourage people to leave the second pillar.

“The ministry didn’t spend a single cent on any campaign,” Richter claimed. “We were interested in providing objective information.”

Top stories

Russian spies allegedly recruit also Slovaks

They are using martial art clubs in Germany and dozens more in other EU states, in the Western Balkans, and in North America.

Illustrative stock photo

EC scrutinises state aid for Jaguar Photo

There is a question whether the scrutiny may impact the carmaker’s plans to invest in Slovakia.

The construction site of a brand new plant of Jaguar Land Rover near Nitra.

GLOBSEC forum will host guests from 70 countries

The 12th year of the conference will be attended by the highest number of participants in its history.

Slovak President Andrej Kiska gives the opening speech of The Globsec 2016 security conference.

Armed forces need new armour, and more

Slovakia's armed forces need to modernise their military technology, but also improve infrastructure and make soldiers' salaries more competitive.

Illustrative stock photo