Tomas Mulls Optional Return for Retirees to First-Pillar Pension System

Bratislava, 15 April (TASR) - Future retirees whose combined pension from the first and second pillars would be lower than from the first pillar alone should be able to choose to receive their pension only from the first pillar, said Labour Minister Erik Tomas (Voice-SD) ahead of Wednesday's cabinet session. A working group at the Labour, Social Affairs and the Family Ministry is discussing the proposal, which Tomas described as "very factual". "Before retiring, people would be allowed to decide what's better for them: whether to receive a pension from both the first and second pillars, or to return to [state social-insurer] Socialna poistovna and receive a pension from the first pillar only," he explained. He underlined that it wouldn't be possible to leave the second pillar in any other way, nor would contribution rates be reduced. The minister said that the proposal is preferable to opening up the second pillar, a step that pension management companies have long criticised, as it would create uncertainty about the assets available for investment. He noted that a similar model already exists in Croatia. According to Tomas, the working group is also discussing anchoring minimum contribution levels in the Constitution to prevent them from falling below a certain threshold. He said that the group includes experts, representatives of the ministry and opposition members, with the aim of definitively resolving all issues related to the second pension pillar. mf/df