1. SLOVAKIA : OLD-AGE PENSION SAVINGS („II. PILLAR“)
Brussels Vladislav Borík
May 7, Head of Service Office
Ministry of Labour, Social Affairs
and Family of the Slovak Republic

2. 1. Slovak Pension System Mandatory pension system Pillar I
Mandatory pension insurance, DB, PAYG (administered by the Social Insurance Agency).
Pillar II
Mandatory old-age pension „saving“ (investment), DC, Funded (administered by the Pension Administrator Companies).
Voluntary supplementary pensions
Pillar III
Supplementary pension saving, DC, Funded (administered by the Supplementary Pension Companies).
Special-purpose saving and the life insurance with tax incentive.

3. 2. OLD-AGE PENSION SAVINGS BASIC CHARACTERISTICS
Voluntary system for those entering the labour market
During transitional period, all insured persons were allowed to enter the system regardless of age
9 %-rate for contributions to old-age savings
Minimum saving period - 15 years
Introduction of ownership rights to personal accounts and bequests
Pension funds – growth, balanced and conservative
Types of reimbursements: payment for administration of pension fund + payment for conducting personal pension account (as of July 1, – payment for increased assets value)

4. 3. OLD-AGE PENSION SAVINGS – WEAKNESS OF THE IMPLEMENTATION
Insufficiently adjusted annuity phase
Absence of competitive environment
Absence of guarantees
Amount of contributions to the Pillar II. fails to correspond with existing economic environment
Transfer of finances from personal pension accounts to the third parties
Joint administration of personal pension accounts and investments

5. 4. AGE DISTRIBUTION OF PERSONS PARTICIPATING IN THE PILLAR II
4. AGE DISTRIBUTION OF PERSONS PARTICIPATING IN THE PILLAR II. ON DECEMBER 31, 2008
Necessary period of saving in the Pillar II.
is at least 30 years according to opinions of MoLSAF SR!

6. 5. Old-Age Pension Savings – current value of pension funds on 15. 4

7. 6. Old-Age Pension Savings – Present Steps
Adjustment of investment rules
Temporary Pillar II. opening (2008, 2009)
Higher quality of information provided to insured persons and other entities in the Pillar II.
Shortened period of transfer in between complementary pension administrators
Optimization of payment for administration of pension fund
Introduction of reimbursement for increasing value of assets in the pension fund
Introduction of guarantee account in the pension fund

8. 7. Old-Age Pension Savings – Future Steps
Preparation of pay-out phase
Deepening of competitive environment
Strengthening of participant’s position in the old-age pension system

9. Thank you