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Opposition Proposes Reversing Changes in Second Pension Pillar
Sunday 25 April 2010 Zoom in | Print page
Bratislava, April 25 (TASR) - The opposition parties concur that it's necessary to make joining the second private pension pillar mandatory for young people again, although it would perhaps be possible for them to leave it later.
Currently, school-leavers can choose whether to join the second pillar or remain part of the first state pillar, which, according to the Opposition, requires comprehensive reform.
The ethnic-Hungarian SMK party promotes the idea of extending the period for monitoring the profitability of pension funds from six to 60 months, with eligibility requirements for receiving a pension from the second pillar to be redefined. All the requirements would be the same as those introduced in the first pay-as-you-go pillar - namely, reaching retirement age and saving for at least 15 years.
According to SDKU-DS, the main problem isn't the second pillar, but the first one, administered by state-owned social-insurer Socialna Poistovna. This pillar should be improved by the introduction of a minimum guaranteed pension set at the subsistence level in order to guarantee the principle of solidarity. As far as deductions are concerned, there should be one social fund, with employers making all the contributions. SDKU also wants to pass a constitutional act granting protection to the second pillar under law, guaranteeing that the level of contributions remains at the current level.
Another opposition party, the Christian Democratic Movement (KDH), says that it also wants to remedy deformities in the second pension system caused by the current Government. According to KDH, the first pillar should be subject to reform, as it's untenable in its current shape. This reform should be based on strengthening the solidarity principle at the expense of the merit principle.
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