The Slovenia Times

Pension Expenditure to Reach EUR 5bn This Year



The figures were confirmed on Thursday as the ZPIZ governing council endorsed an amended business plan for the year that financial director David Klarič said was needed due to amended forecasts by the government's think-tank IMAD.

The state-owned Pension Fund Management (KAD), which supplies a portion of the ZPIZ revenue, is expected to contribute EUR 190m this year.

However, the figure appears optimistic, as KAD only supplied EUR 50m for 2013 and the government had to secure a last-minute budget injection of EUR 87m at the end of the year.

ZPIZ is theoretically funded by employer and employee contributions, but they no longer suffice. It thus gets well over EUR 1bn directly from the budget each year since its books need to be balanced according to law.

The 2014-2015 plan is based on the assumption that pensions will not be indexed to inflation.

The pension reform of 2013 stipulates that a "demographic fund" would be set up to bolster the sustainability of pension financing, but it is yet to be established.

This failure was highlighted by the members of the governing council today.


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