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.”

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