The Slovenia Times

Govt Secures Extra EUR 87.1M for Pension Purse


Based on estimates of the cash flow of the Pension and Disability Insurance Institute (ZPIZ), the manager of the pension purse, the Finance Ministry established that the funds available in the budget for extra liabilities towards ZPIZ will not be sufficient.

The supplementary budget secured EUR 1.14bn for the purpose, with the assumption that the Pension Fund Management (KAD) would supply ZPIZ EUR 120m. However, KAD only provided EUR 50m.

The remaining EUR 70m would under the budget implementation documents be secured through 10% of the proceeds from the sale of state assets, under the condition that these total at least EUR 700m.

Since the condition has not been met, the state failed to transfer 10% of the proceeds, and KAD could in turn not secure EUR 70m to ZPIZ.

The state is obligated under the pension and disability insurance act to ensure that pensions be paid to beneficiaries even if ZPIZ's expenditure exceeds revenue from mandatory pension contributions.


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