Supplementary Pension Savings Scheme
Doplnkové dôchodkové sporenie
Coverage
Mandatory insurance
- Employees classified within labour categories 3 or 4.
- Players of wind instruments and dancers.
Voluntary insurance
- It is open to any individual to take out an individual contract with a private pension scheme provider.
Financing
General finances
- Fully funded scheme with individual retirement accounts financed by contributions and capital revenues (investment returns).
Contribution payments
- Employees classified within labour categories 3 and 4 and players of wind instruments and dancers: contribution payments are paid by the employer (at least 2% of the monthly gross earnings; the given collective agreement may envision greater contributions). Employees can voluntarily provide further contribution payments and decide upon the amount individually.
- Voluntary insurance: persons provide contribution payments and decide upon their amount individually. Contribution payments can be paid by the employer (in whole or part) as an employee benefit.
State support & incentivising strategies
- Employees’ contribution payments are tax-deductible from the tax base in the amount in which they were demonstrably paid in the tax period, up to a total of EUR 180 per year.
- Employer contributions of up to 6% of the gross salary of the employee are tax-deductible.
Administration
- The ‘Supplementary Pension Company’ is a joint-stock company with its registered office in the territory of the Slovak Republic; companies create and administer pension funds.1
- The ‘National Bank of Slovakia’ regulates licences, supervises business operations and investments, and sanctions pension companies.
Qualifying Conditions
- Employees classified within labour categories 3 and 4 and players of wind instruments and dancers: retirement age 55; minimum insurance periods 10 years.
- Voluntary insurance: minimum age 62; often starting with standard or early retirement in the statutory old age pension scheme.
Benefits
Pension payments
- Accumulated capital through contribution payments and investment yields, minus administrative costs/fees of the pension plan provider.
- The life-long annuity is paid monthly.
Taxation and social security contributions
- Pension payments are not subject to tax.
- Pension payments are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Employees classified within labour categories 3 or 4.
- Players of wind instruments and dancers.
Voluntary insurance
- It is open to any individual to take out an individual contract with a private pension scheme provider.
General finances
- Fully funded scheme with individual retirement accounts financed by contributions and capital revenues (investment returns).
Contribution payments
- Employees classified within labour categories 3 and 4 and players of wind instruments and dancers: contribution payments are paid by the employer (at least 2% of the monthly gross earnings; the given collective agreement may envision greater contributions). Employees can voluntarily provide further contribution payments and decide upon the amount individually.
- Voluntary insurance: persons provide contribution payments and decide upon their amount individually. Contribution payments can be paid by the employer (in whole or part) as an employee benefit.
State support & incentivising strategies
- Employees’ contribution payments are tax-deductible from the tax base in the amount in which they were demonstrably paid in the tax period, up to a total of EUR 180 per year.
- Employer contributions of up to 6% of the gross salary of the employee are tax-deductible.
- The ‘Supplementary Pension Company’ is a joint-stock company with its registered office in the territory of the Slovak Republic; companies create and administer pension funds.1
- The ‘National Bank of Slovakia’ regulates licences, supervises business operations and investments, and sanctions pension companies.
- Employees classified within labour categories 3 and 4 and players of wind instruments and dancers: retirement age 55; minimum insurance periods 10 years.
- Voluntary insurance: minimum age 62; often starting with standard or early retirement in the statutory old age pension scheme.
Pension payments
- Accumulated capital through contribution payments and investment yields, minus administrative costs/fees of the pension plan provider.
- The life-long annuity is paid monthly.
Taxation and social security contributions
- Pension payments are not subject to tax.
- Pension payments are not subject to social security contributions.
1 The following supplementary pension companies offer their services: AXA d.d.s., a.s.; NN Tatry-Sympatia, d.d.s., a.s.; Stabilita, d.d.s., a.s.; Doplnková dôchodková spoločnosť Tatra banky, a.s.
Legal Basis: Act No. 650/2004 Coll. on Supplementary Pension Savings (Zákon o doplnkovom dôchodkovom sporení); Act No. 355/2007 on the Protection, Support and Development of Public Health (Zákon o ochrane, podpore a rozvoji verejného zdravia).