SLOVAKIA - The Slovakian government is making a fresh claim on private pension provision and has introduced a second deadline allowing Slovakians to leave the second pillar pension system in favour of the state-run pension scheme.
The government agreed to launch a new ‘opt-out' clause yesterday, following the expiry of the first six-month deadline in June this year.
Prime minister Robert Fico, who is known for his dislike of private pension funds, launched another attack on the second pillar at the weekend, claiming they are too risky, particularly in the current financial market turmoil.
In July, figures revealed just 6% of Slovakians had chosen to leave the second pillar pension system by the end the deadline, though it was feared new member inflow will be slower from now on as it is no longer mandatory.
Jiri Rusnok from ING Czech Republic and Slovakia told IPE Fico's measure had "hardly any impact on the system at all" the first time round, while adding he did not expect a great effect after the second deadline expires.
That said, Rusnok added he envisages Fico will pursue his attack on the second pillar, and said providers are worried about what will happen next.
"This decision is not a good one for the stable development of a retirement scheme devoted to the basic retirement security of the Slovak citizens," he concluded.
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