Slovak Labor Ministry Prepares Option to Choose Pension Benefits from First or Second Pillar

Slovakia's Ministry of Labor is preparing legislation that would allow citizens to choose whether to receive their pension benefits from the first pillar public system or the second pillar private system. Labor Minister Tomáš Drucker described the proposal as a very practical measure. The reform would affect Slovakia's two-pillar pension system, where the first pillar consists of the state-run pay-as-you-go system funded by current contributions, while the second pillar involves private pension funds where individuals' contributions are invested in financial markets. Currently, workers who participate in both pillars receive benefits from each system upon retirement, but the proposed change would give retirees flexibility in choosing their primary source of pension income.