PENSION AND DISABILITY INSURANCE
The Pension and Disability Insurance Section area of activity includes drafting of acts and other regulations, analyses, reports, information and expert opinions concerning pension and disability insurance, supervision of the work of the Pension and Disability Insurance Institute of the Republic of Slovenia and international co-operation in the Section's area of activity.
The pension and disability insurance system in the Republic of Slovenia covers:
· compulsory pension and disability insurance based on the intergenerational solidarity
· compulsory supplementary pension insurance (occupational insurance) on the basis of the contributions paid there into (personal pension savings accounts)
· voluntary supplementary pension insurance (supplementary insurance) on the basis of the contributions paid there into (personal pension savings accounts).
Compulsory Pension and Disability Insurance
Pursuant to the Pension and Disability Insurance Act (Ur. l. RS, No. 96/12, 39/13, 46/13 - ZIPRS1314-A, 63/13 - ZIUPTDSV, 99/13 - ZSVarPre-C, 101/13 - ZIPRS1415, 111/13 - ZMEPIZ-1, 32/14 - ZPDZC-1, 44/14 - ORZPIZ206,46/14 - ZPZRTH-E, 85/14 - ZUJF-B, 95/14 - ZIPRS1415-C, 95/14 - ZIUPTDSV-A, 95/14 - ZUPPJS15, 95/14 - ZUJF-C, 97/14 - ZMEPIZ-1A, 31/15 - ZISDU-3 - ZPIZ-2), in Slovenia the compulsory pension and disability insurance guarantees the following rights:
a) the right to pension (there are several types of pension):
- old age pension (article 27)
- early retirement pension (article 29)
- invalidity pension (article 41)
- widow/widower’s pension (article 53)
- survivor’s pension (artice 55)
- partial pension (article 40)
b) rights from disability insurance:
- a right to occupational rehabilitation (article 70)
- a right to occupational rehabilitation benefit (article 80)
- a right to invalidity benefit (article 85)
- a right to reassignment (article 81)
- a right to work on a part-time basis for no less than four hours daily or twenty hours weekly (article 82)
- a right to temporary benefit (article 84)
- a right to partial benefit (article 86)
c) other rights:
- a right to assistance and attendance allowance (article 99)
- a right to annual supplement (article 95)
Pursuant to ZPIZ-2, there is a possibility of voluntary membership in the compulsory insurance for persons above 15 years of age with permanent residence in the Republic of Slovenia and not fulfilling the conditions to be covered by the compulsory insurance.
Within the Section’s area of activity, the Pension and Disability Insurance Institute of the Republic of Slovenia (PDII) acts as a provider organisation.
The Commission of the Ministry of Labour, Family and Social Affairs establishing grounds for termination of employment contract has its seat within the PDII; the Commission was formed pursuant to the Decree establishing employment quotas for persons with disabilities and the Rules concerning working methods of the Commission determining grounds for termination of employment contract.
Employers can initiate the proceedings to establish grounds for termination of employment contract without offering a new contract of employment to a person with disabilities. The Commission establishes whether reasons stated by the employer to substantiate the termination of the employment contract without offering a new contract of employment are valid.
Occupational insurance covers the compulsory admission to the occupational retirement provision, and the rights and obligations arising from the insurance in the event of old-age and death determined on the basis of the contributions paid there into.
Occupational insurance is intended for people working in demanding jobs and professions where due to the specifics of their work they cannot be expected to work until their full retirement age. Positions of employment based on which insured persons are admitted to the occupational retirement provision on account of the difficulty or harmfulness of the job can be assessed as such in cases when the following conditions are fulfilled:
- in relation to the performance of work there are considerable harmful effects on the state of health and the capacity for work of the employees despite the implementation of all general and specific precautionary measures stipulated by regulations governing health and safety at work as well as other measures which serve to eliminate or mitigate such effects;
- employees perform work in conditions which are difficult and harmful to health in the direct vicinity of the sources of such harmful effects and in an uninterrupted work process;
- work in the circumstances referred to in the first and second indents of this paragraph is performed on a full-time basis, whereby working time that is shorter than full-time working time as stipulated by the law and collective agreements shall likewise be considered as full-time working time if so provided due to special working conditions.
The basis for the payment of contributions for the occupational retirement provision is the insured person’s salary or salary compensation. Occupational insurance pension plan determines uniform occupational insurance contribution in amount of 9.25% of an insured person’s salary.
The occupational insurance guarantees the right to an occupational pension. Occupational pension is a benefit which ensures an individual a certain income from the moment he/she leaves the labour market until he/she meets the conditions for retirement under the compulsory pension and disability insurance. The amount of occupational pension depends on the amount of funds deposited on a person’s personal account, and of the expected length of the period of receiving the occupational pension. The occupational pension may not fall below the old-age pension which the insured person would have received under a compulsory pension and disability insurance.
The occupational pension is paid out to the beneficiary in monthly amounts from the time of the acquisition of the occupational pension until the fulfilment of conditions for the acquisition of an early retirement benefit or an old-age pension under the compulsory insurance, depending on the beneficiary’s choice.
Conditions that an insured person can acquire the right to an occupational pension are:
1. - when their years of pensionable service together with the added pensionable service amount to 42 years and 6 months in accordance with the provisions hereof, and
- if the funds collected on their personal account suffice for the pay-out of the occupational pension.
(the period of receiving the occupational pension shall be equal to the difference between the actually completed years of pensionable service without the added pensionable service arising from the coverage by the occupational retirement provision and the 40 years’ pensionable service) or
2. - when their years of pensionable service together with the added pensionable service amount to no less than 40 years and when, depending on the level of the bonus in the position of employment where the insurance period was applied with the bonus in accordance with the former regulations, they attain the following age:
An insured person who fulfilled the conditions for the entitlement to an old-age pension, an early retirement benefit, widow(er)’s pension or disability pension prior to enforcing the right to an occupational pension have the right to the pay-out of the surrender value of the units of the funds on the personal account, if the funds on their personal account do not exceed 5,000 EUR or may request that the funds are transferred free-of-charge to the supplementary insurance where the insured person shall acquire the right to a supplementary pension.
Supplementary insurance represents the depositing of funds on the personal account of a member of such form of insurance with the aim of ensuring additional income for the person when he/she acquires the rights under the compulsory pension and disability insurance (early retirement benefit or old-age pension, disability pension, widow/widower’s pension or occupational pension). Only an insured person or beneficiary of the rights arising from the compulsory pension insurance may join the supplementary insurance.
This form of insurance may be established as collective insurance with an employer, who partially or completely funds the insurance for all his employees, or by entering an individual insurance retirement plan under which every member pays his/her own premium and may join it independently.
A payer of the supplementary insurance premium is entitled to tax relief for the premiums paid.
The two rights ensured by this form of insurance are as follows:
- the right to supplementary old-age pension and
- the right to early supplementary old-age pension.
Insured person may also (under certain conditions) demand the withdrawal of all the funds on his/her personal account in one payment.
A pension fund may be established and managed by:
- a pension company;
- an insurance company holding the authorisation to perform transactions within the life insurance group in compliance with the act governing insurance;
- a bank holding the authorisation to perform transactions regarding the management of pension funds in compliance with the act governing banking.
A pension fund may be established as:
- a mutual pension fund,
- an umbrella pension fund, or
- a guarantee fund.
The pension fund’s management company shall manage the collected funds:
- in compliance with the life-cycle investment policy of a Member or
- in compliance with the investment policy ensuring guaranteed return on net contributions.