Pension payments are at risk, and more than a billion euros are missing

While last year the state helped the Social Insurance Agency (Sociálna poisťovňa) with €103.5 million, this year €1.06 billion is supposed to go to the institution from the state budget. This is the highest amount in the last 10 years, Pravda.sk wrote with reference to the portal Ma7.sk portal.

What do you want to know about this institution?

In Slovakia, the Social Insurance Institution plays a major role in social security and social insurance. The original Slovak name is “Sociálna poisťovňa”.

Sociálna poisťovňa is the central social and health insurance institution operating in the country and performs many important tasks, such as:

– health insurance: Sociálna poisťovňa is responsible for the administration and management of health insurance in Slovakia. People are asked to pay for health insurance, and Sociálna poisťovňa collects this money and distributes it to health care institutions.

– Retirement insurance: Sociálna poisťovňa also manages pension insurance and is responsible for pension administration and payments.

– Social benefitsThe Foundation also provides social support to those in need, such as the unemployed, the disabled, and other groups with special cases.

– Unemployment benefits: Sociálna poisťovňa is responsible for the payment of unemployment benefits and related administration.

The organization’s duties also include collecting social security contributions, conducting inspections and maintaining data.

the The purpose of Sociálna poisťovňa is to protect the social welfare and safety of Slovak citizensAs well as supporting different segments of society in obtaining social and health services.

Why is the company having financial problems now?

In addition, in the years 2024-2026, the required support from the state budget for social insurance may continue to increase, according to the draft social insurance budget for 2024 and the budget outlook for 2025 and 2026.

Government aid is expected to reach nearly 1.7 billion euros next year, 2.02 billion euros in 2025, and more than 2.22 billion euros in 2026. In the next three years, this amount is expected to reach 5.94 billion euros.

At the same time This amount exceeds what Social Insurance received from the state budget in the last ten years.

Between 2014 and 2023, 5.21 billion euros were allocated to the insurance company from the state budget.

Social Security pension expenses increased by 1 billion 358 million euros in the eight months of this year compared to the previous year. While the insurer spent 5.49 billion euros on pension payments in the period from January to August last year, in the eight months of this year 6.85 billion euros.

The annual increase of one billion and 358 million euros in retirement expenses is a record.

Last year, the insurance company’s eight-month pension expenses increased by only 179 million euros, and in 2021 by 204 million euros in a year-on-year comparison.

Behind the significant increase in pension expenditures lies the double valorization of pensions this year and the introduction of a parental pension.

As of January 1 of this year, the insurer has increased all pensions by 11.8 percent. Since the beginning of this year, for example, the average old-age pension has risen by more than 61 euros. As of July 1, the insurer has increased all pensions by 10.6 percent. This means a further increase of more than 60 euros in the average old-age pension. In addition, the insurer paid out nearly €270 million in pensions to parents in the first half of this year alone.

Over the next three years, Social Insurance expenditures to pay pensions and other social security benefits will increase by several billion euros.

This year, the insurer has to use 11.6 billion euros to pay pensions and other benefits. The insurer’s expected care expenses are expected to rise to €12.8 billion next year, €13.7 billion in 2025, and €14.4 billion in 2026. This represents an increase of more than €2.8 billion over three years.

Nearly 10.2 billion euros will be spent on pensions this year. Nearly 11.3 billion euros next year, more than 12 billion euros in 2025, and 12.6 billion euros expected in 2026. This means an increase of 2.4 billion euros in three years.

Last year, the insurer spent nearly 8.3 billion euros on pensions.

If we compare last year’s pension expenses with the planned expenses for 2026, we can see an increase of 4.3 billion euros, that is, more than 50 percent.

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