1. 1. 2013

Ljubljana – One of the centrepieces of the government’s reform drive, the overhaul of the pension system aimed at lowering pension expenditures by tightening retirement conditions, takes effect on Tuesday.

The pension and disability insurance bill, which was passed unanimously in parliament on 4 December, will raise the retirement age for both men and women to 65 years or 40 years of service or 40 years of pensionable service under the condition that the person is at least 60 years old.

Under the previous law, women were eligible for full pension at the age of 63 or with 38 years of pensionable service at the age of 58 years, while men were eligible for full pension at the age of 65 or with 40 years of pensionable service at the age of 58.

The stricter retirement conditions are expected to bring the state pension purse, whose expenditure stood at around EUR 5bn in 2011, around EUR 150m in savings in the first year of implementation, with the number expected to increase after the transitional period passes.

For retirement on the basis of years of service, the transition period of the reform will be in effect until 2017 and until 2018 for full age retirement.

The reform also extends the basis for pension calculations from 15 best-paid years of service to 24 best-paid years. Men will be eligible for 57% of average pay during that period and women for 60%.

The reform also introduces incentives for people to continue working after meeting the retirement criteria. A bonus of up to 12% will be earned by those who stay on the job for up to three years after meeting retirement conditions.

Source: STA

 

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