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Pension legislation changes endorsed in the National Assembly

The National Assembly endorsed on Tuesday in a 52:0 vote amendments to the umbrella pension and disability insurance law which deals with occupational pensions and the dual status of pensioners who want to continue working beyond the retirement age.

Under the amendments, occupational pensions, a second pillar of the pension system meant for those who typically retire earlier due to harsh working conditions, will increase slightly.


The state-run pension fund which manages the occupational pensions scheme will meanwhile be allowed to tap into "solidarity reserves" in the event that individuals do not have enough money on their occupational pension accounts.


This change was endorsed by social partners on the Economic and Social Council and also received broad support in parliament.


That was not the case with the second major change, provisions dealing with partial retirement. Under the old law, those meeting retirement conditions were allowed to continue working for at least four hours a day, receiving the proportional part of the pension.


In the new law, individuals may decide to work as little as 20% of working time. This has irked sole traders and farmers, who wanted to be able to draw full pensions while continuing to pursue their business.


The provisions pursue the principle of equal treatment, Peter Pogačar, state secretary at the Ministry of Labour, the Family, Social Affairs and Equal Opportunities told the members of Parliament.