Gov't: Pensions of Those Who Retired Before January 2004 to Go Up

Bratislava, April 19 (TASR) – The financial situation of the elderly who retired before January 1, 2004 should improve, as the Cabinet at its session on Wednesday approved a draft amendment on social insurance that will increase their pensions as of January 2018, TASR learnt on the same day.

In line with the proposal submitted by the Ministry of Labour, Social Affairs and the Family, their pensions should go up by around €45 monthly on average next year and by another €46 monthly in 2019 and 2020 each.

At the moment, their pensions are far lower than those received by people who retired after January 1, 2004, despite the two groups having worked the same amount of time for the same salaries. The pensions will be re-calculated on an individual basis. The pension increase should apply to about 88,400 people.

In addition to the increase for the above group of pensioners, pensions will also increase for the so-called socialist pensioners, i.e. those who retired before September 30, 1988 with their pensions being calculated from the average monthly earnings of at least SKK 2,333 (€77.44). Their pensions should grow by €25.50. The pension increase should concern about 12,900 pensioners in 2018, about 10,500 in 2019 and 8,400 in 2020.

The law should take effect as of December 31, 2017. The cost of the pension increase will be approx. €50 million in 2018, while it should be €47 million in 2019 and €45 million in 2020.