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Option to leave private pensions ends; few do so
01/07/2008 - 16:35
Etc/GMT
The second pillar was one of the main features of the Mikuláš Dzurinda government's old-age pension reform, allowing clients to redirect 50 percent of their social insurance fees into a private pension company, the so-called 'second pillar', with the rest going into what is known as the 'first pillar': the pay-as-you-go-system administered by the public social security provider, Socialna Poistovna. The pension fund management companies said there has been no mass exodus of clients from the second pillar during the past six months, but they still object to the campaign that the Labour Ministry ran to persuade their clients to quit. The government and the private pension fund management companies agree that the system must be sustainable and needs stability. However, they differ greatly on how to achieve this goal.
What do the numbers say?
As of June 25, the number of clients who since the beginning of the year have quit the second pillar reached almost 68,000. Of those who left the second pillar, the largest group were aged over 45.
The pillar was also open to those who wished to enter but had missed previous deadlines. From the beginning of the year, a total of 12,968 clients have entered the second pillar.
(created by Karina Katuscakova)news_source:
The Slovak Spectator
