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 and voluntary supplementary pension and disability insurance
- pension and disability insurance on the basis of personal pension savings accounts.
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.
MODERNISATION OF THE PENSION INSURANCE SYSTEM
Compulsory Pension and Disability Insurance
Pursuant to the Pension and Disability Insurance Act (Ur. l. RS, No. 109/2006 – official consolidated text; ZPIZ-1), in Slovenia the compulsory pension and disability insurance guarantees the following rights:
a) the right to pension; there are several types of pension:
- retirement pension
- invalidity pension
- widow’s pension
- survivor’s pension
- partial pension
b) rights from disability insurance:
- a right to vocational rehabilitation
- a right to compensation for disability
- a right to transfer to another workplace to and part-time work
- a right to other allowances under disability insurance
- a right to reimbursement of travel expenses
c) supplementary rights:
- a right to attendance allowance
- a right to disability allowance
- income support to supplement the pension
d) other rights:
- severance pay
- care allowance
- a right to annual supplement.
In addition to the rights under compulsory insurance, the entitlement to state pension is provided for under the pension and disability insurance.
Pursuant to ZPIZ-1, individuals in Slovenia may decide for a voluntary membership in the compulsory insurance.
Supplementary pension insurance...
... is designed for persons already covered by the compulsory pension and disability insurance, who wish to ensure themselves additional social security in retirement.
Under the supplementary pension insurance scheme, the policyholders bear the investment risk and are guaranteed a minimum return on the net paid in insurance premiums. So, the pension assessed under such insurance depends not only on the paid in insurance premiums but also on the rates of return generated through investing accumulated premiums.
The Pension and Disability Insurance Act (ZPIZ-1) provides for two types of supplementary insurance, namely:
- compulsory supplementary pension insurance and
- voluntary supplementary pension insurance.
The characteristics of the compulsory supplementary pension insurance are the following:
- mandatory coverage for insured persons performing work that is particularly demanding and harmful to health and for the insured persons engaged in work which cannot be performed professionally after a certain age
- premium instalment payment; a policyholder bears the investment risk and is guaranteed a minimum payment
- insurance amount is paid out in instalments, as occupational pension or reduced occupational pension.
Pursuant to paragraph one of Article 282 of ZPIZ-1, compulsory supplementary insurance must cover all workplaces in respect of which augmented insurance period was counted before the entry into force of ZPIZ-1. Pursuant to the Act, the Government of the RS adopted a Decree on standards and criteria for identifying workplaces subject to the compulsory supplementary pension insurance.
The compulsory supplementary insurance entitles the policyholder to receive occupational pension; this right may be exercised so as to:
- get an early retirement and attain the standard pension level by receiving occupational pension or
- remain in employment despite the possibility of early retirement and later on receive regular pension plus the reduced occupational pension.
The compulsory supplementary insurance is provided by the Compulsory Supplementary Pension Insurance Fund managed by Kapitalska družba pokojninskega in invalidskega zavarovanja, d. d., Ljubljana.