Parliament gave its initial approval to the draft bill reopening the second, or capitalisation, pension pillar on October 22. The bill will now move to its second reading.
The governing coalition parties voted for the draft, while the opposition voted against it. Parliament is dealing with the amendment to the law on old-age pension saving in shortened legislative proceedings. It should receive final approval later this week. If the president signs it, it will become effective as of November 15.
The cabinet proposed reopening the second pension pillar because, it says, it is concerned about the potential deepening of the crisis in financial markets, in which pension fund management companies invest.
The second pillar would be opened until June 30 of next year, during which time people would have an opportunity to decide whether to remain in the second pillar or return to the state-run, pay-as-you-go system operated by social security provider Sociálna Poisťovňa. The ministry estimates that between 30,000 and 150,000 policyholders will quit the second pension pillar. It also estimates that 5,000 to 20,000 people may take the opportunity to join it and become clients of private pension fund management companies. SITA
Compiled by Zuzana Vilikovská from press reports
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