1. TRADE UNIONS’ ROLE IN PENSION REFORM AND PENSION SCHEME GOVERNANCE SLOVENIA METKA ROKSANDIĆ ILO ITC TURIN, 7 JUNE 2006

2. CONTENT BACKGROUND OF THE PENSION SYSTEM IN SLOVENIA PENSION REFORM IN 1999 PENSION SCHEME GOVERNANCE

3. BACKGROUND OF PENSION SYSTEM IN SLOVENIA A LONG TRADITION OF SOCIAL INSURANCE OF BISMARCK TYPE (solidarity, mutuality – pay-as-you-go system) AFTER II. WW A COMMON (Yugoslav) SYSTEM - right to social insurance unified and equal for all 1982 – AUTONOMOUS PENSION INSURANCE SYSTEM 1992 – NEW LAW (new state and constitution)

4. REFORM OF THE PENSION SYSTEM – 1. STEP :GOVERNMENT’S PREPARATOION October 1995 - IMF,WB on SLO government request - “New challenges confronting the Social Insurance System” 1996 – PHARE programme “Starting-points of pension and invalidity system reform” 1996 - Employers’ contributions dicreased (need for state financing!) 1997 – public campaign for urgent reform (social partners and publicly) December 1997 – “White book on pension reform”

5. REFORM’S PROPOSALS RETIREMENT AGE 65 YEARS FOR ALL – THE ONLY CONDITION FOR RETIREMENT COMPULSORY II. PILLAR BIG DEDUCTIONS OF ACQUIRED PENSION’S RIGHTS EQUAL RETIREMENT AGE FOR MEN AND WOMEN SHORT TRANSITIONAL PERIOD

6. REFORM OF THE SYSTEM 2. step – trade unions’ offensive February 1998 – weekly Trade Union’s demonstration in front of the Govern.building March 1998 –collecting of signatures (150.000 – sign for eventual referendum) 28. March 1998 - big demonstration in Ljubljana (25.000 colleagues);the biggest one after II. WW April 1998 – first sign of govern. abating (non compulsory II. pillar)

7. REFORM OF THE SYSTEM IN SOCIAL DIALOGUE JULY 1998 – draft law in parl. procedure inspite of ESC demand for social partners consensus 31.7.1998 –National Council demanded withdraw of draft law without consensus AUGUST 1998 – FEBRUARY 1999 – intensively public debate, ESC seeks for consensus APRIL 1999 – signed agreement between trade unions and minister of labour; ESC agree 1. JANUARY 2000 – LAW ENFORCED

8. TRADE UNIONS’ RESULTS “FULL PENSION” FOR 40 WORKING YEARS (38 YEARS FOR WOMEN) AT MINIMUM AGE OF 58 YEARS VOLONTARY II. PILLAR (on the basis of collective agreements) DIFFERENT AGE AND YEARS OF SERVICE FOR WOMEN (age 63- 61,special benefits for women) LONGER TRANSITIONAL PERIODS

9. PENSION REFORM RESULTS COMPULSORY PENSION INSURANCE (pay-as- you-go) REMAINS FUNDAMENTAL GRADUALLY HIGHER AGE FOR ACQUAIRING PENSION GRADUALLY MORE YEARS FOR CALCULATION OF PENSION (best 18 years - not 10 years) GRADUALLY DICREASED PENSIONS FROM 85% TO 72.5% OF AVERAGE WAGE (FOR 1 YEAR 1.5%, NOT 2%) LONGER TRANSITIONAL PERIODS (UP TO 2014, 2022)

10. PENSION REFORM 1999 – CONCLUSIONS (1) TRADE UNIONS THE ONLY REPRESENTATIVES OF INSURED (WORKERS) AND CONTRIBUTORS TO THE SYSTEM TRADE UNIONS’ CLEAR STANDPOINT CRUCIAL FOR KEEPING THE SAME SYSTEM (AT THE BEGINING THE ONLY OPOSITION AGAINST NEW REFORM) LONGSTANDING BATTLE

11. PENSION REFORM 1999 – CONCLUSIONS (2) IMPORTANT ROLE OF SOCIAL ORIENTED YOUNGER SCIENTISTS IMPORTANT POSITIVE ROLE OF MEDIA, PROCESS OF THE ACCESSION TO THE EU – PLUS FOR REASONABLE PENSION REFORM WITH SOCIAL DIALOGUE TO NEW REFORM – STEP FORWARD IN DEMOCRACY

12. FINANCING THE PENSION SCHEME 1.PILLAR COMPULSORY 24.35% OF GROSS WAGE 15.5%EMPLOYEES 8.85% EMPLOYERS ALL 2. PILLAR VOLUNTARY + COMPULSORY COLLECTIVE AGREEMENTS EMPLOYERS EMPLOYEES INDIVIDUALS 3. PILLAR VOLUNTARY INDIVIDUALS

13. PENSION AND INVALIDITY INSURANCE INSTITUT OF SLOVENIJA AUTONOMOUS SOCIAL INSURANCE INSTITUT – IMPLEMENTS LAWS AND LEGAL ACTS FINANCING BY CONTRIBUTIONS (AND STATE BUDGET) GOVERNED BY REPRESENTATIVES OF THOSE WHO PAY CONTRIBUTIONS AND BENEFITIARS

14. FIRST CHANGES OF INSTITUTE’S GOVERNANCE NEW GOVERNMENT, 2005.CHANGES IN GOVERNANCE BEFORE- ASSEMBLY (30 MEMBERS) AND MANAGING BOARD (13 MEMBERS) NOW- COUNCIL (27 MEMBERS) MEMBERS’ STRUCTURE IS CHANGED; BEFORE GOVERNMENT LESS MEMBERS (7) AS TRADE UNIONS AND EMPLOYEES (8+8), NOW THE SAME

15. GOVERNANCE OF THE INSTITUTE COUNCIL 27 MEMBERS 10 MEMBERS - GOVERNMENT 6 MEMBERS - TRADE UNIONS 4 MEMBERS - EMPLOYERS 5 MEMBERS - PENSIONERS 1 MEMBER - DISABLED 1 MEMBER - STAFF DIRECTOR GENERAL SERVICES OF INSTITUTE SERVICES OF INSTITUTE

16. COMPULSORY INSURANCE FINACING – FIRST PILLAR CONTRIBUTIONS EMPLOYEES 15.50 % EMPLOYERS 8.85 % 2/3 OF BUDGET INSTITUTE STATE BUDGET 1/3 OF BUDGET rights according to special laws and financial means for covering posible loss

17. SELFMANAGEMENT IS NOT UNLIMITED SELFMANAGEMENT IS NOT UNLIMITED STATE ASSEMBLY’S DECISION ON CONTRIBUTION RATE LEVEL GOVERNMENT’S AGREEMENT TO THE FINANCIAL PLAN OF THE INSTITUTE GOVERNMENT’S AGREEMENT TO THE DIRECTOR GENERAL APPOINTMENT MINISTER OF LABOUR CAN HOLD ON SOME DECISIONS

18. TRADE UNIONS – PART OF THE SELFMANAGEMENT SYSTEM (1) TRADE UNIONS – PART OF THE SELFMANAGEMENT SYSTEM (1) RESPONSIBILITY FOR MANAGING IS BIG, BUT LIMITED EXAMPLE ! Proposal on increasing the contribution rate was not accepted by the institut’s assembly because of trade union’s standpoint and actions

19. TRADE UNION – PART OF THE SELFMANAGEMENT SYSTEM (2) DECIDING BETWEEN PRINCIPALES AND CONCRETE IS HARD EXAMPLE ! not payed contributions – dept withdrawal TRADE UNION’S REPRESENTATIVES SOMETIMES BETWEEN TWO SIDES (government and pensioners demands) EXAMPLE ! Annual holiday supplement 2005

20. SUCCESFUL WORK IN INSTITUTE’S BODIES – GOOD TO KNOW BE GOOD PREPARED FOR EVERY MEETING, LOOKING INFORMATIONS FROM OTHERS IN INSTITUTE AND OUTSIDE, RECONCILIATING VIEWS AMONG TRADE UNIONS’ REPRESENTATIVES, LOOKING FOR TRADE UNION’S POLITICAL STANDPOINT BEFORE MAIN STRATEGICAL DECISIONS ARE MADE, LOBBYING FOR YOUR STANDPOINTS/ PROPOSALS