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Slovenia passes pension reform

The Slovenian National Assembly has passed the pension reform without a single opposing vote. The reform will be implemented on 1 January 2013, and the financial effects in the first year are estimated at 150 million euros. This is the first key structural reform which the Government has planned to improve the economic and financial situation.

The Slovenian National Assembly passed with 76 votes in favour and none against the government-proposed pension reform. The reform tightens retirement conditions by raising the retirement age to 65 years or 40 years of pensionable service.


Upon the passage of the reform legislation, the Minister of Labour, Family and Social Affairs, Andrej Vizjak, said that the unanimity is a good indicator for its implementation and expressed hope that the reform would yield the expected result, meaning “decent pensions and stabilisation of the pension budget, and a message to the people that it pays to work longer”. 


The amended legislation stipulates stricter retirement conditions. Via transitional periods, the reform raises the retirement age to 65 years for both genders (retirement will also be possible at 60 years of age on the basis of 40 years of service without the purchase of additional years). It also extends the period for calculating the pension basis from the current 18 to 24. The introduction of so-called informative accounts will for the first time enable access to data on the value of the projected pension. 


Pension reform was attempted already by the previous government under Borut Pahor; however, citizens rejected it in a referendum in June 2011. The passing of the reform in parliament yesterday marks the first step in a series of structural reforms which the Government under Janez Janša began drafting immediately after taking office in February 2012. These include labour market reform, Act Establishing Slovenian Sovereign Holding, Bank Rehabilitation Act and 2013 and 2014 budgets.