On September 9, 2010, Slovenia’s government approved a draft law intended to improve the long-term fiscal sustainability of the pension system in the face of rapid population aging (according to projections by the European Union's statistical office Eurostat, the share of those aged 65 or older as a percentage of those of working age (aged between 15 and 64) will increase from approximately 24% in 2010 to 62% in 2060).The law is now awaiting parliamentary approval.
If the law is approved, the full retirement age for workers with at least 15 years of contributions will gradually increase by 6 months each year starting in 2021, from age 63 to age 65 for men and from age 61 to age 65 for women. Workers with long work histories (at least 43 or 41 years of contributions for men and women respectively) will be eligible for a full pension at age 60 in case of men and age 58 in case of women (currently, men can retire with a full pension at age 58 with at least 40 years of contributions and women at age 56 and 8 months with at least 37 years and 3 months of contributions). Early retirement with a reduced pension will be possible at age 60 for both men and women with at least 40 or 38 years women of contributions for men and women respectively.
In addition, the law would change the way in which pension benefits are calculated by basing old-age pensions on the highest 34 consecutive years of earnings, rather than the highest 18 consecutive years that is being used.
Also, on September 28, 2010 the government adopted budget bills for 2011 and 2012 that freeze pensions at current levels for 2011, with an increase in 2012 only if inflation exceeds 2%. The measure is aimed at reducing the government deficit.
Sources: Social Security Programs Throughout the World: Europe 2010; Republic of Slovenia press release, September 9, 2010; "Govt Adopts Pension Reform Bill,"Slovenska Tiskovna Agencija, September 9, 2010; "Slovenian Government Adopts Pension Reform Bill," HIS Global Insight Daily Analysis, September 10, 2010; "International Headlines," Mercer, September 15, 2010; "Government Adopts 2011, 2012 Austerity Budgets," Slovenska Tiskovna Agencija, September 28, 2010.