June 10, 2021: Courtesy visit to the Minister of Labor, Social Affairs and Family of the Slovak Republic Milan Krajniak
2021/12/9
On June 10, 2021, I paid a courtesy visit to Minister of Labor, Social Affairs and Family Milan Krajniak. During the meeting, we exchanged views on the Slovak pension reform.
As in Japan and Slovakia, we are watching the trend of an aging population and a declining birth rate. Therefore, a reduction in the number of the working population, which is a protective pillar of the social security system, is expected. In Slovakia, pension reform has become a major topic, as it is closely linked to the reform of public finances.
The law in Japan imposes an obligation to recalculate pension funds under the public pension system every five years. The Japanese government is therefore obliged to inform the public on a regular basis at five-year intervals about the long-term outlook of the public pension system, based on an analysis of the latest demographic estimates. At the same time, every five years, the government submits draft laws to the parliament, the aim of which is to reform the pension system based on the above-mentioned estimates of the development of pension finances.
However, there is currently no legal mechanism in place in Slovakia that would force the monitoring of pension finances and propose the necessary reforms of the public pension system on a regular basis. Therefore, there are whether the inhabitants of Slovakia have sufficient information about the state of pension finances, what pension they can expect, or how to get this information at all.
The public pension system is the most watched topic in any country. I therefore believe that it is essential to provide the public with important information on pension funding in a transparent and timely manner. Only in this way is it possible to ensure public confidence in the system and to carry out the necessary reforms.
As in Japan and Slovakia, we are watching the trend of an aging population and a declining birth rate. Therefore, a reduction in the number of the working population, which is a protective pillar of the social security system, is expected. In Slovakia, pension reform has become a major topic, as it is closely linked to the reform of public finances.
The law in Japan imposes an obligation to recalculate pension funds under the public pension system every five years. The Japanese government is therefore obliged to inform the public on a regular basis at five-year intervals about the long-term outlook of the public pension system, based on an analysis of the latest demographic estimates. At the same time, every five years, the government submits draft laws to the parliament, the aim of which is to reform the pension system based on the above-mentioned estimates of the development of pension finances.
However, there is currently no legal mechanism in place in Slovakia that would force the monitoring of pension finances and propose the necessary reforms of the public pension system on a regular basis. Therefore, there are whether the inhabitants of Slovakia have sufficient information about the state of pension finances, what pension they can expect, or how to get this information at all.
The public pension system is the most watched topic in any country. I therefore believe that it is essential to provide the public with important information on pension funding in a transparent and timely manner. Only in this way is it possible to ensure public confidence in the system and to carry out the necessary reforms.
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