Slovakia's Pension Reform Faces Criticism Over Pre-Retirement Switching Plan

Slovakia's Ministry of Labor is preparing legislation that would allow workers to switch between the first and second pillars of the pension system shortly before retirement. The Fiscal Responsibility Council, an independent government advisory body, has raised concerns about potential risks associated with the proposed changes. Analyst Šuster has criticized the proposal as unfair and costly for the state budget. Slovakia operates a multi-pillar pension system where the first pillar is the traditional state pay-as-you-go system, while the second pillar involves private pension accounts. The timing of switches between these systems has significant implications for both individual retirement benefits and state finances, as late switches could potentially allow people to maximize benefits while shifting costs to taxpayers.