BIENNIAL REPORT
OF THE REPUBLIC OF SLOVENIA
ON THE
EUROPEAN CODE OF SOCIAL SECURITY
PART IX INVALIDITY
(ARTICLE 76 – PARTS NOT SPECIFIED
IN THE RATIFICATION OF THE CODE
OR IN A NOTIFICATION MADE SUBSEQUENTLY)
July 2020
for the period from 1 July 2018 to 30 June 2020. made by the Government of SLOVENIA in accordance with Article 76 of the European Code on Social Security on the position of national law and practice in regard to the matters dealt with in Parts of the European Code of Social Security which have not been specified in the ratification of the Code or in a subsequent notification.
I. Please indicate whether any laws, regulations or contractual provisions (for example, in collective agreements) exist in your country with regard to each of the contingencies referred to in those of the Parts II to X of the Code which have not been accepted. (Please indicate in each case whether protection is provided under a compulsory or a voluntary scheme.)
II. If so, please list the laws and regulations in force at the date of the preparation of the report (with precise references to the official gazettes in which they appeared) and supply the following information:
PART IX
INVALIDITY BENEFIT
I.
The Constitution of the Republic of Slovenia defines Slovenia as a law-governed and social state (Article 2 of CRS). The chapter on human rights and fundamental freedoms specifically guarantees the right to social security (Article 50 of CRS), which stipulates that, under the conditions laid down by law, citizens of RS have the right to social security, including the right to a pension. It is the duty of the state to reulate compulsory health, pension, disability and other social insurance, and to ensure its proper functioning.
Primary legislation:
• Pension and Disability Insurance Act (Official Gazette of the Republic of Slovenia, no. 96/12, 39/13, 99/13 - ZSVarPre-C, 101/13 - ZIPRS1415 in 44/14 - ORZPIZ206, 85/14 – ZUJF-B, 95/14– ZUJF-C, 90/15 – ZIUPTD, 102/15, 29/17, 40/17, 65/17, 28/19 and 75/19; hereinafter referred to as the ZPIZ-2);
• Act Governing the Register of Insured Persons and Beneficiaries of Rights Provided under Pension and Disability Insurance (Official Gazette of the Republic of Slovenia (Uradni list RS), no. 111/13 and 97/14; hereinafter referred to as the ZMEPIZ-1).
• Social Security Contributions Act (Official Gazette RS, no. 5/96, 18/96 – ZDavP, 34/96, 87/97 – ZDavP-A, 3/98, 7/98 – odl. US, 106/99 – ZPIZ-1, 81/00 – ZPSV-C, 97/01 – ZSDP, 97/01, 62/10 – odl. US, 40/12 – ZUJF, 96/12 – ZPIZ-2, 91/13 – ZZVZZ-M, 99/13 – ZSVarPre-C in 26/14 – ZSDP-1; hereinafter referred to as the ZPSV).
Secondary legislation:
• Articles of Association of the Institute of Pension and Disability Insurance of Slovenija (Official Gazette of the Republic of Slovenia (Uradni list RS), no. 52/14).
Basic features of legal arrangements
The system of pension and disability insurance is governed by the Pension and Disability Insurance Act (ZPIZ-2). The system of pension and disability insurance in the Republic of Slovenia comprises (Article 1 of the ZPIZ-2) the system of compulsory pension and disability insurance on the basis of inter-generational solidarity (compulsory insurance), the system of compulsory supplementary pension insurance (occupational retirement provision) and the system of voluntary supplementary pension insurance.
The compulsory insurance guarantees rights to a pension, rights arising from disability, the right to a yearly bonus and the right to an assistance and attendance allowance. The occupational retirement provision guarantees the right to an occupational pension. The supplementary insurance guarantees the right to a supplementary old-age pension and the right to an early retirement supplementary benefit in the form of a pension annuity (Article 3 of the ZPIZ-2).
The Republic of Slovenia ensures the functioning of the compulsory insurance by:
• determining the rate of contributions,
• imposing the compulsory payment of contributions of employers and insured persons,
• setting out rules governing the compulsory admission to the insurance,
• the mode of assessment, payment and recovery of contributions, and
• the conditions for the recognition, assessment and enjoyment of rights, by arranging the system of personal data records and supervision over securing individual rights (Article 5 of ZPIZ-2).
The Republic of Slovenia also guarantees the payment of pensions and other benefits arising from the compulsory insurance to eligible persons also when the expenditures of the Pension and Disability Insurance Institute of Slovenia (hereinafter referred to as the “Institute”) exceed revenues from the compulsory insurance contributions. In this case, the deficit is covered from the state budget or from other sources (Article 5 of PDIA-2).
Articles 162 (Co-financing from the state budget) and 163 (Ensuring the liquidity of the Institute) of the act also stipulate that the state must cover the difference between the revenues and expenditure of the Institute from the state budget or from other sources.
The Republic of Slovenia guarantees the functioning of the occupational retirement provision and supplementary insurance, and supervises the operations of the institutions. (Article 5 of the ZPIZ-2).
Compulsory insurance includes citizens of the Republic of Slovenia and foreign citizens who meet the conditions laid down by the ZPIZ-2 or international agreement (first paragraph of Article 6 of the ZPIZ-2).
Rights arising from the compulsory pension and disability insurance are (Article 26 of the ZPIZ-2):
1. Pension rights:
• an old-age pension,
• an early retirement benefit,
• a disability pension,
• a widow(er)’s pension and a part of the widow(er)’s pension,
• the right to a survivor’s, and
• partial pension.
2. Rights arising from the disability insurance (rights based on the reduced working capacity):
• the right to occupational rehabilitation,
• the right to reassignment,
• the right to part-time work,
• the right to an occupational rehabilitation benefit,
• the right to a temporary benefit,
• the right to a disability benefit, and
• the right to a partial benefit.
3. Additional and other rights:
• a yearly bonus, and
• the right to an assistance and attendance allowance.
1. Scope
Please indicate, for each of the contingencies referred to in the non-accepted Parts of the Code, so far as possible on the basis of available statistics, the approximate number of persons protected, that is:
either (a) the number of employees protected and
(b) the total number of employees
or (a) the number of persons belonging to the economically active population protected (or to the prescribed classes of residents protected) and
(b) the total number of residents.
(If the protection covers all employees, the entire economically active population, or all residents, it will be sufficient to indicate this, without supplying any statistics.)
Persons insured under compulsory pension and disability insurance are (Articles 14 to 19 of the ZPIZ-2):
• active population (employees in employment relationships, self-employed persons, farmers, partners and shareholders, managing personnel, farmers and persons performing work on the basis of another legal relationship);
• recipients of unemployment benefit whose contributions for the pension and invalidity insurance are paid by the Employment Service of the Republic of Slovenia;
• persons entitled to compensation due to their temporary incapacity for work after the termination of their employment relationship, if they are not covered by the compulsory insurance on some other grounds;
• persons carrying out professional foster care;
• persons engaged in a religious office as religious workers;
• persons entitled to compensation during the occupational rehabilitation;
• one of the parents in case he/she is entitled to: parental allowance if such person is not covered by the compulsory insurance on some other grounds; to partial payments for loss of income; to a parental benefit, and is not entitled to parental leave as well as not covered by the compulsory insurance on other grounds; to the payment of the proportionate part of contributions and to the right to work on a part-time basis for the care and protection of children to cover the difference to full-time work;
• family assistant entitled to partial payments for loss of income;
• soldiers engaged in a voluntary military service and citizens during the voluntary training for protection and rescue.
Admission to the compulsory insurance on a voluntary basis is possible for persons with permanent residence in the Republic of Slovenia who are at least 15 years of age and do not meet the conditions for the admission to compulsory insurance (persons in an employment relationship in respect of a part-time to cover the difference to the full-time work; recipients of a survivor’s or widow/widower’s pension; Nationals of the Republic of Slovenia who are employed abroad; recipients of an occupational pension; special categories of farmers) (Article 25 of the ZPIZ-2).
According to the ZPIZ-2, there are also categories of persons who are insured for special cases. Anyone who performs a particular job or activity on the basis of which is not included in the compulsory pension and disability insurance should be incorporated on the basis of specific insurance case, due to the fact that in the performance of any activity there is always a possibility of disability or death.
• pupils and students during practical lessons, production work or industrial work placement, and expert excursions;
• children and adolescents with physical and mental developmental disorders engaged in practical lessons at training organisations or in obligatory practical work;
• persons engaged in voluntary practical work after the completed schooling, whether or not they receive remuneration for such practical work;
• war-disabled servicemen, civilian war-disabled persons and other disabled persons engaged in occupational rehabilitation and/or training during practical work and exercises;
• pupils and students participating in undergraduate and postgraduate studies during their temporary and occasional work pursuant to the regulations governing this type of work, etc.
2. Conditions for Entitlement to Benefits
Please indicate, for each contingency referred to in the non-accepted Parts of the Code, the conditions for entitlement to benefits, particularly as regards the definition of the contingency, the qualifying period, the waiting period, the maximum duration of benefits, etc.
(See also, as regards Part II, Articles 8, 11 and 12; as regards Part III, Articles 14, 17 and 18; as regards Part IV, Articles 20, 23 and 24; as regards Part V, Articles 26 and 29; as regards Part VI, Articles 32, 37 and 38; as regards Part VII, Articles 40 (please indicate the number of children and the age limits of children in respect of whom any family benefits are payable) and 45; as regards Parts VIII, Articles 47, 51 and 52; as regards Part IX, Articles 54, 57 and 58; as regards Part X, Articles 60, 63 and 64.)
Disability pension
According to the ZPIZ-2, the right to disability pension is one of the rights arising from compulsory pension and disability insurance.
The disability exists where, due to changes in the state of health which cannot be remedied by treatment or by measures of medical rehabilitation and which have been established in accordance with ZPIZ-2, the capacity of an insured person to secure or maintain their position of employment or be promoted professionally has been reduced (first paragraph of Article 63 of ZPIZ-2).
Disability is classified into the following categories:
• category I: an insured person has lost the capacity to engage in an organised gainful employment or is not capable of performing his/her own occupation and has lost the remaining capacity for work;
• category II: an insured person’s capacity for work in his/her own occupation is impaired by 50% or more;
• category III: an insured person has lost the capacity to work on a full-time basis, but is capable of working at a certain position on a part-time basis, for no less than four hours daily, or if an insured person’s capacity for work in his/her own occupation is impaired by less than 50%, or if an insured person can continue to work in his/her own occupation on a full-time basis, but has lost the capacity for work at the position of employment has been assigned to (second paragraph of Article 63 of the ZPIZ-2).
Causes for the onset of disability are:
• occupational injury (Article 66 of the ZPIZ-2);
• occupational disease (Article 68 of the ZPIZ-2);
• illness;
• injury outside work.
The right to a disability pension is acquired by:
• an insured person who has been afflicted with a disability of category I;
• an insured person who has been afflicted with a disability of category II and is not capable of performing other full-time work without an occupational rehabilitation, to which, however, they are not entitled since they are over 55 years of age;
• an insured person who has been afflicted with a disability of category II and is not capable of performing other part-time work for at least 4 hours daily without an occupational rehabilitation, to which, however, they are not entitled since they are over 50 years of age;
• an insured person who has been afflicted with a disability of category II or III and who is not provided with an appropriate employment since they have reached 65 years of age (Article 41 of the ZPIZ-2).
Minimum period of insurance depends upon the age of the person when the disability emerged:
• age 30 years and over: employed for at least one third of the time between attaining 20 years of age and the development of disability (years of service);
• age between 21 and 30: employed for at least one quarter of the time between reaching 21 and the development of the disability (years of service);
• a person who was afflicted with disability of category I prior to reaching 21 years of age acquires the right to disability pension, if at the onset of disability he was covered by compulsory insurance or if he has completed at least three months of insurance period .
For an insured person who obtained a short-cycle degree, the years of service shall be calculated from the completion of 26 years of age onwards and for an insured person who obtained a long-cycle (four years tertiary) or a university degree, the years of service shall be calculated from the completion of 29 years of age onwards.
No period required if disability caused by an occupational injury or occupational disease (first paragraph of Article 42 of the ZPIZ-2). In case of occupational injury and occupational disease the disability pension is assessed in the amount of 63,5% (prior 57,25%) of the Pension Rating Basis (hereinafter referred to as the: PRB) (first paragraph of Article 47 of the ZPIZ-2).
The amount of disability pension is assessed according to the PRB in the same manner as for the old-age pension depending upon how and when the disability occurred. A disability pension is assessed to an insured person (man and woman) who became disabled before reaching the age of 65, at least in the amount of 41% of the pension base - second paragraph of Article 48 of the ZPIZ-2).
If the disability caused by an illness or injury outside work occurred after the completion of 65 years of age, the disability pension shall be assessed from the PRB in the minimum amount specified for the assessment of an old-age pension for 15 years’ insurance period.
Where diseases and injuries are partly related to work and partly unrelated to work, the disability pension is calculated separately for each cause. The sum cannot be lower than 26% of the minimum PRB and cannot exceed 63,5% of the PRB (second paragraph of Article 51 of the ZPIZ-2).
The percentage for the assessment of a disability pension is determined by taking into account the completed pension qualifying period of an insured person and the calculation period calculated according to Article 137 of the ZPIZ-2 (first paragraph of Article 49 of the ZPIZ-2).
A calculation period is a fictitious period of pension qualifying period to be taken into account in the assessment of an insured person’s rights if the latter has yet to complete 65 years of age (full pensionable age) as of the day the disability occurs, which equals 2/3 of the period between the occurrence of disability and the date on which the insured person would have attained 60 years of age, and ½ of the period between the date when an insured person would have reached 65 years of age and the date when the insured person would have reached 60 years of age (Article 137 of the ZPIZ-2).
An insured person who is entitled to disability pension is guaranteed the minimum pension in the amount of 29% of the minimum PRB of € 871,34 (gross) (since 1 January 2020), i.e. € 226,55 per month. The minimum PRB is determined by the Institute at the beginning of every calendar year. It amounts 76,5 % of average monthly salary paid out in the Republic of Slovenia in the previous calendar year reduced by the taxes and contributions paid from the salary at the average rate in the Republic of Slovenia (first paragraph of Article 36 of the ZPIZ-2). Main condition of eligibility is 15 years of insurance period.
The maximum PRB of € 3.485,36 (gross) (since 1st January 2020) is an amount four times higher than the minimum PRB.
Other rights arising from the disability insurance
Disability Benefit: is paid to an insured person who was recognized the right for a reassignment after having completed occupational rehabilitation and who is either: afflicted with an invalidity of Category II and beyond age 55; or afflicted with an invalidity of Category III if his/her capacity for work in his/her own occupation has been reduced by less than 50% or in particular cases if s/he can continue to work in his/her own occupation on a full-time basis but s/he is not capable of working at the position of employment s/he has been assigned to. Amount of the invalidity benefit depends on the cause of termination of employment (20% - 80% of the invalidity pension the person would be entitled to at the occurrence of invalidity).
Partial Benefit: an insured person afflicted with invalidity of Category III who is no longer capable of working full-time or without occupational rehabilitation, is entitled to part-time work and partial benefit. Partial benefit is assessed in relation to the invalidity pension the person would be entitled to on the day of occurrence of the invalidity, at a percentage corrresponding to the reduction of the full working time, as follows:
50% when the insured person works 4 hours a day,
37.5% when s/he works 5 hours a day,
25% when s/he works 6 hours a day, and
12.5%, when s/he works 7 hours a day.
Temporary Benefit: an insured person who, after the completion of the occupational rehabilitation, is entitled to a reassignment or to work on a part-time basis for no less than four hours daily or twenty hours weekly, is entitled to a temporary benefit until s/he starts working at another position on a full-time basis or a part-time basis for no less than four hours daily or twenty hours weekly.
Disability Allowance: pension and disability insurance no longer provides for disability allowance. Those who were in receipt of disability allowance for physical impairment on 31 December 2012 will continue to receive this benefit, except when it is granted on account of accident at work or occupational disease pending the entry into force of regulations governing the protection of persons with disabilities. Disability allowance continues to be paid in the amount which was determined in December 2012.
Assistance and Attendance Allowance: available to lawfully permanent resident recipients of old-age, early retirement, invalidity, widow/widower's and survivor's pension, should they need permanent help to satisfy their vital necessities. It amounts to at least 53% of the minimum PRB determined for the last month prior to the entry into force of the ZPIZ-2 (december 2012). Persons who need assistance in performing a majority of vital necessities are entitled to half of this amount.
Assistance and attendance allowance amounts 76% of the previous mentioned base for insured persons who need 24-hours supervision and professional help.
3. Level of Benefits
(a) As regards periodical payments, please indicate the manner in which the respective benefits are calculated, relating this information to the criteria laid down in Articles 65, 66 and 67 of the Code.
Article 65 / paragraph 6 / (c): a person whose earnings are equal to 125 per cent of the average earnings of all persons employed in the Republic of Slovenia:
· average wage in 2019 = 1.133,50 EUR (net) = 1.753,84 EUR (gross)
· STANDARD WAGE: 125 per cent of average wage (net) in 2019 = 1.416,88 EUR
· ASSESMENT BASIS FOR THE CALCULATION OF BENEFITS (net) = 1.416,98 EUR [1]
(1) TITLE I
A: Standard beneficiary: a person whose earnings are equal to 125 per cent of the average earnings of all persons protected (Article 65 / paragraph 6 / (c))
B: 125 per cent of average wage (net)
C: Standard wage (net) in 2019 = 1.416,88 EUR (net)
· ASSESMENT BASIS FOR THE CALCULATION OF BENEFITS (net) = 1.416,98 EUR (net)
Year |
Salary (net) |
Valorisation coefficients |
Average valorised monthly salary in SIT (net) |
Average valorised salary in EUR |
1990 |
84.855,00 |
48,017 |
339.540,21 |
1.416,88 |
1991 |
155.549,52 |
26,194 |
339.538,67 |
1.416,87 |
1992 |
462.829,70 |
8,816 |
340.025,56 |
1.418,90 |
1993 |
693.032,79 |
5,880 |
339.586,06 |
1.417,07 |
1994 |
889.036,71 |
4,583 |
339.537,91 |
1.416,87 |
1995 |
1.056.685,66 |
3,855 |
339.460,26 |
1.416,54 |
1996 |
1.218.296,41 |
3,344 |
339.498,59 |
1.416,70 |
1997 |
1.361.014,45 |
2,994 |
339.573,10 |
1.417,01 |
1998 |
1.491.383,93 |
2,732 |
339.538,40 |
1.416,87 |
1999 |
1.634.569,95 |
2,493 |
339.581,90 |
1.417,05 |
2000 |
1.808.400,95 |
2,253 |
339.527,27 |
1.416,82 |
2001 |
2.024.387,66 |
2,013 |
339.591,02 |
1.417,09 |
2002 |
2.221.345,81 |
1,834 |
339.495,68 |
1.416,69 |
2003 |
2.388.949,69 |
1,706 |
339.629,01 |
1.417,25 |
2004 |
2.524.542,40 |
1,614 |
339.550,95 |
1.416,92 |
2005 |
2,645.234,77 |
1,540 |
339.471,79 |
1.416,59 |
2006 |
2,781.373,61 |
1,465 |
339.559,36 |
1.416,96 |
2007 (EUR) |
12.517,03 |
1,358 |
1.416,51 |
|
2008 |
13.494,73 |
1,260 |
1.416,95 |
|
2009 |
13.952,88 |
1,219 |
1.417,38 |
|
2010 |
14.498,85 |
1,173 |
1.417,26 |
|
2011 |
14.810,47 |
1,148 |
1.416,86 |
|
2012 |
14.871,02 |
1,143 |
1.416,46 |
|
2013 |
14.956,10 |
1,137 |
1.417,09 |
|
2014 |
15.082,15 |
1,127 |
1.416,46 |
|
2015 |
15.197,89 |
1,119 |
1.417,20 |
|
2016 |
15.452,88 |
1,100 |
1.416,51 |
|
2017 |
15.931,08 |
1,067 |
1.416,53 |
|
2018 |
16.390,08 |
1,037 |
1.416,37 |
|
2019 |
17.002,68 |
1,000 |
1.416,88 |
CALCULATION:
Basis:
- Taking into account data on 125 % of average gross and net salaries in the Republic of Slovenia from 1990 to 2019 including;
- Valorisation of salaries from previous years to the 2019 level of salaries;
A disability pension shall be assessed from the PRB calculated in the same manner as the PRB for the assessment of an old age pension. Old-age pension is assessed on the basis of the monthly average of salaries an insured person has received, i.e. the insurance bases according to which his contributions were calculated, in any one of the successive 24 consecutive years of insurance following 1 January 1970, whichever is the most favourable for the insured person (the pension rating base) (Article 30 of the ZPIZ-2).
The most favorable pension rating base was calculated on the basis of salaries in the period from 1990 to 2013. The sum of valorised monthly salaries from this period amounts to 34.007,59 EUR. If divided by 24, this gives the amount1.416,98 EUR, which represents the pension rating base.
(2) TITLE II
TIME BASIS: March 2020
Assumptions for assessment of the disability pension:
D: Amount of benefit granted during the time basis:
Calculation period[3]:
- 2/3 of the period between 30. 3. 2020 (occurrence of disability) and 30. 3. 2031 (attain the age of 60 years) = 7 years and 4 months
- ½ of the period between 30. 3. 2036 (attain the age of 65 years) and 30. 3. 2031 (attain the age of 60 years) = 2 years and 6 months.
TOTAL: 30 years + 7 years 4 months + 2 years 6 months
= 39 years and 10 months
The law stipulates that the percentage for the assessment of a disability pension is determined by taking into account the completed years of pension qualifying period of an insured person and the calculation period calculated according to Article 137 of ZPIZ-2. The disability pension assessed in accordance with the preceding paragraph for a disability caused by an outside work injury or an illness may not exceed the amount of a pension for a disability caused by an occupational injury or an occupational disease, save for cases when the completed years of pension qualifying period exceed 40 years (men) (Article 49 of the ZPIZ-2).
- On the basis of abovementioned the assessment percentage for total 39 years and 10 months (pension qualifying period and calculation period) amounts 57,87% PRB:
27% (for 15 years of pension qualifying period) + 24 x 1,26% + 0,63% = 57,87 % of PRB (Article 37 of the ZPIZ-2).
57,87 % of the assessment basis = 57,87 % of 1.416,98 EUR = 820,01 EUR (net)
Taking into account an adjustment of pensions on 1 January 2020 by 3,2%, the disability pension would amount to 846,25 EUR.
E: Child benefit:
1st child = 76,27 EUR; 2nd child = 85,25 EUR; Σ = 161,52 EUR
F: Child benefit:
1st child = 100,08 EUR; 2nd child = 110,63 EUR; Σ = 210,71 EUR
G: (D + F) / (C + E)
(846,25,39 EUR + 210,71 EUR) / (1.416,98,49 EUR + 161,52 EUR) = 1.056,96 EUR / 1.578,5 EUR = 0,6695 – 66,95 %
(b) As regards benefits in kind (medical care), please indicate whether they cover the benefits mentioned in Articles 10, 34 and 49 of the Code.
(c) Please indicate whether there exist any provisions for the review of current periodical payments following substantial changes in the general level of earnings where these result from substantial changes in the cost of living.
The benefits arising from the disability insurance related to the rights arising from the disability of categories II and III are indexed in the same manner as pensions (Article 90 of the ZPIZ-2).
The indexation of pensions is carried out once annually based on the growth in the average gross monthly salary and the average growth in consumer prices in the Republic of Slovenia, as determined and officially published by the Statistical Office of the Republic of Slovenia (second paragraph of Article 105 of the ZPIZ-2).
On 1 January 2020 pensions were indexed according to Articles 105 to 107 of the ZPIZ-2 by 3,2 %.
The benefits arising from the disability Insurance related to the rights arising from the disability of categories II and III are indexed in the same manner as pensions.
4. Miscellaneous
(a) Please indicate whether claimants have a right of appeal in case of refusal of the benefit or complaint, and indicate the authority to which any such appeal lies.
For decision-making concerning the rights under compulsory pension and disability insurance, the provisions of the General Administrative Procedure Act (Zakon o splošnem upravnem postopku (Official Gazette of the Republic of Slovenia (Uradni list RS), nos. 24/06 - official consolidated text, 105/06 - ZUS-1, 126/07, 65/08, 8/10 in 82/13) applies unless otherwise provided for by the ZPIZ-2.
An insured person is entitled to file an appeal against the decision issued at the first instance. Within the scope of the procedure for the enforcement of the rights based on one’s disability, the employer also has the right to appeal.
Decisions concerning the rights arising from insurance are made:
- at first instance – by a regional unit of the Institute;
- at second instance – by the Institute’s body of second instance.
Judicial protection of rights is provided by a competent court as provided for by law (Labour and Social Courts).
(b) Please indicate the manner in which the cost of benefits is financed and the distribution of actual resources according to the sources from which they are derived.
The public system is based on pay-as-you-go financing by contributions, paid by employers and employees. In the event that the expenditure of the Institute exceeds revenues from contributions from compulsory insurance, the state must guarantee the payment of pensions from compulsory insurance to eligible persons. In this case, the deficit is covered from the state budget or from other sources (Article 5 of the ZPIZ-2).
Articles 162 (Co-financing from the state budget) and 163 (Ensuring the liquidity of the Institute) of the act also stipulate that the state must cover the difference between the revenues and expenditure of the Institute from the state budget or from other sources.
(c) Please specify which authority or authorities are entrusted with the supervision of the application of the laws and regulations and indicate the manner in which organisations of employers and workers may be called upon to co-operate in this application.
Ministry of Labour, Family, Social Affairs and Equal Opportunities is responsible for the supervision of the application over the legality of the operations of the Institute and the eligible use of funds
Social partners and other relevant stakeholders (representatives of the government, trade union federations or confederations, employer associations, associations or organisations of retired persons, disability organization for disabled workers and Institute’s employees) take part in advisory board of the Institute.
(d) Please attach copies of the laws and regulations referred to in the present report. If reports on the application of the legislation are submitted to a national authority, please supply a copy of the most recent report.
Below are links to the laws and regulations referred to in the present report
• Pension and Disability Insurance Act (ZPIZ-2)
http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO6280
• Act Governing the Register of Insured Persons and Beneficiaries of Rights
Provided under Pension and Disability Insurance (ZMEPIZ-1)
http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO6784
• Annual Reports of the Institute
https://www.zpiz.si/cms/?ids=content2019&inf=1195
III. (a) Please indicate whether any modifications have been made in the national legislation or practice with a view to giving effect to all or some of the provisions of the Code.
/
(b) Please state, where appropriate, any difficulties due to the Code, to the legislation, to the national practice or to any other reason which may prevent or delay the ratification of the Code.
/
(c) Please state also whether it is intended to adopt measures to give effect to those provisions of the Code not yet covered by the national legislation or practice.
/
[1] The transparency of the system is improved, by simplifying valorisation coefficients, which are used in computing the pension assessment base. These coefficients are now equal to the growth of nominal wages, so that the replacement rates can be easily computed (Thus, in the year 2020 for men the replacement rate for 40 years of work is equal to 58. 5% (=27% + 1.26% x 25), whereas for women it is somewhat higher, i.e. 63.5% (=29% + 1.38% x 25)). The replacement rate for men is gradually increasing (in the period from 2020 to 2025), so that from 1 January 2025 it will be equal for men and women. Under ZPIZ-1, the valorisation coefficients were computed by taking into account pension indexation. The most recent values of these valorisation coefficients were equal to some 0.75 of the growth of nominal wages.
For men, the accrual rate under the 1992 Pension and Disability Insurance Act was 35% for the first 15 years of insurance and 2% for each additional year (above 15 years). For women the accrual rate was 40% for the first 15 years and 3% for each additional year up to 20 years of insurance, followed by 2% for each additional year up to 35 years of insurance.
[2] The PRB for the assessment of a disability pension: A disability pension is assessed from the PRB calculated in the same manner as the PRB for the assessment of an old-age pension. The disability pension acquired based on an insurance period shorter than the period in which, pursuant to Article 30 of the ZPIZ-2, the bases serve for the calculation of the PRB for the assessment of an old-age pension is assessed from the PRB calculated based on the bases from which contributions had been paid during the course of the insurance, save for the calendar year in which the right to the disability pension is enforced. An insured person who, save for the year in which s/he enforce his/her right to a disability pension, has had no insurance coverage, have his/her disability pension assessed from the minimum PRB (Article 45 of the ZPIZ-2).
[3] According to the ZPIZ-2 the percentage of assessment is fixed taking into account the actual pension qualifying period and the fictitiouscalculation period for an insured person who did not reach the full pensionable age, which equals 2/3 of the period between the occurrence of disability and the date on which the insured person would have attained 60 years of age, and ½ of the period between the date when an insured person would have reached 65 years of age and the date when the insured person would have reached 60 years.
[4] Both children are before or in elementary school.
[5] According to the Exercise of Rights to Public Funds Act (Zakon o uveljavljanju pravic iz javnih sredstev) (Official Gazette of the Republic of Slovenia, no. 62/10, with changes), the average monthly income per family member is calculated by dividing the family's joint income with the number of months of one calendar year (12 months) and the number of family members. The amount of child benefit is laid down on the basis of family placement in the income class (Article 22 of Exercise of Rights to Public Funds Act).
Calculation of child benefit: Family’s joint income of previous year/ by months (12)/ by family members (4).
Child benefit is calculated on the basis of net income.
[6] According to the Exercise of Rights to Public Funds Act, amount of benefit varies according the income in € of the net national average wage in the Republic of Slovenia of the previous year and is paid up to the age of 18:
For children before/in elementary school:
- Income up € 191,40: 1st child: € 117,05, 2nd child: € 128,75, 3rd and each subsequent child: € 140,47
- Income from € 191,41 to € 319,01 1st child: € 100,08 2nd child: € 110,63, 3rd and each subsequent child: € 121,12
- Income from € 319,02 to € 382,82: 1st child: € 76,27, 2nd child: € 85,25, 3rd and each subsequent child: € 94,19
- Income up € 191,40: 1st child: € 117,05, 2nd child: € 128,75, 3rd and each subsequent child: € 140,47
- Income from € 446,63 to € 563,60: 1st child: € 49,19, 2nd child: € 57,41, 3rd and each subsequent child: € 65,57
- Income from € 563,61 to € 680,56: 1st child: € 31,17, 2nd child: € 39,01, 3rd and each subsequent child: € 46,81
- Income from € 680,57 to € 871,98: 1st child: € 23,38, 2nd child: € 31,17, 3rd and each subsequent child: € 39,01.
- Income from € 871,99 to € 1.052,75: 1st child: € 20.36, 2nd child: € 28,16, 3rd and each subsequent child: € 35,95.
For children in high school, paid up to the age of 18:
- Income up € 191,40: 1st child: € 117,05, 2nd child: € 128,75, 3rd and each subsequent child: € 140,47
- Income from € 191,41 to € 319,01 1st child: € 100,08 2nd child: € 110,63, 3rd and each subsequent child: € 121,12
- Income from € 319,02 to € 382,82: 1st child: € 76,27, 2nd child: € 85,25, 3rd and each subsequent child: € 94,19
- Income up € 191,40: 1st child: € 117,05, 2nd child: € 128,75, 3rd and each subsequent child: € 140,47
- Income from € 446,63 to € 563,60: 1st child: € 49,19, 2nd child: € 57,41, 3rd and each subsequent child: € 65,57
- Income from € 563,61 to € 680,56: 1st child: € 31,17, 2nd child: € 39,01, 3rd and each subsequent child: € 46,81
- Income from € 680,57 to € 871,98: 1st child: € 29,52, 2nd child: € 37,31, 3rd and each subsequent child: € 50,84.
- Income from € 871,99 to € 1.052,75: 1st child: € 23,43, 2nd child: € 31,23, 3rd and each subsequent child: € 40,85.
When a child lives in a single-parent family then the Child Benefit (otroški dodatek) is increased by 30%.
If a pre-school child is not enjoying available childcare services then the child benefit is increased by 20%.