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Prime Minister Borut Pahor and Minister of Labour, Family and Social Affairs Dr Ivan Svetlik present pension reform proposal

The Prime Minister of the Republic of Slovenia Borut Pahor, the Minister of Labour, Family and Social Affairs Dr Ivan Svetlik and the Director of the Labour and Labour Rights Directorate Peter Pogačar today presented the proposal for the Pension and Disability Insurance Act and the Government's plans related thereto. In his introduction, the Prime Minister pointed out that the pension reform is urgent, since fewer and fewer employees work for more and more retired persons, which makes the system increasingly unjust and unstable. "The ambition of the Government is to provide a more just and predictable pension system," added Prime Minister Pahor.

 

(Photo: Stanko Gruden/SPA)

 

In general, the drafting of amendments is a thankless task, but every postponement would make the currently bad situation even worse. "The Government cannot afford this if it wants to protect the interests of the people," stressed the Prime Minister.  He said that Slovenia has been witnessing a constant drop in pensions since 2000, which cannot be simply stopped by cosmetic corrections as already today the pension fund is financed from the budget.  Minister Svetlik highlighted that the current pension system works towards the right direction, however, it is too weak to catch up with the trends of population ageing.  The new pension system therefore must provide such conditions "that the state will be able to normally guarantee rights deriving from the pension system," but this can only be achieved by extending working life. In respect of the bonuses and maluses the Minister explained that to all those who currently fulfil the conditions for retirement but have decided to keep on working, the old retirement conditions will apply at the time of their retirement also after the entry into force of the new pension system.

 

(Photo: Stanko Gruden/SPA)

 

In response to the question on the announcement of trade unions to require a referendum on the pension law if the latter is adopted, Prime Minister Pahor said that this is the final version of the draft law.  It will become the proposal for the new Pension and Disability Insurance Act if the trade unions and the employers submit such comments on the draft law on the basis of which it can be easily established from the experience and the current debates that no compromise can be reached on them. However, if their proposals prove to be of such nature that the continuation of social dialogue could be beneficial, the Government might re-convene a meeting of all parties involved and develop a compromise, added the Slovenian Prime Minister.