Second Pension Pillar opening for three months

Slovaks will be given the opportunity to leave the private second pension pillar between March 15 to June 15 this year, according to an amendment to the pension savings system that was passed by Parliament on Wednesday. The Government decided to submit the amendment after the actual level of the pensions paid to the first group of pensioners from the second pillar at the beginning of this year was published. "In view of the level of pensions being offered to people for their savings, the second pillar is not profitable for a certain group of people", reads the amendment. Savers will therefore be able to leave the system within a three-month period. As in three previous periods when the pillar was opened up, people will also be able to join. The option to leave the pillar will be granted to all those who haven't arranged to draw their regular and/or early pensions from an insurance company or a pension funds management company. Those who decide to leave will be obliged to send a written note to state insurer Sociálna poisťovňa, which oversees the first state-run pillar, asking to be excluded from the second private pillar. Sociálna poisťovňa will subsequently notify the respective pension funds management company, with the latter sending the applicant's savings including yield to the bank account of Sociálna poisťovňa. Any other savings made up of voluntary contributions to the second pillar including yield will be paid to the applicant.