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State social insurer in trouble.
(From The Slovak Spectator)
THE COUNTRY'S social security provider is becoming increasingly nervous about its financial position, in large part because savers have ignored its warnings that they themselves should be nervous about saving in the second, capitalisation, pillar of the country's pension system, set up by the previous government.
The insurer, Socialna Poistovna, drafted its current budget on the assumption that about 150,000 people would heed its warnings and return to the state-managed pay-as-you-go system, the first pillar of the pension system. Instead, only slightly more than 15,000 have left the privately managed second pillar.
As a result, Socialna Poistovna will probably have to request money from the state in order to continue paying old-age pensions after September. If 150,000 people had returned to ...
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