North Macedonia considers reconstruction of second pension pillar

Gjoko Velkovski, the Minister of Social Policy, Demography and Youth, has stated that the government is considering a reconstruction rather than a simple abolition of the second pension pillar. The move aims to strengthen the pension system and ensure citizens receive higher pensions.

Working groups have been formed to conduct a detailed analysis of the current system. This evaluation takes into account significant shifts in demographics, the number of employees and pensioners, wage levels, and insurance contributions over the last two decades. Velkovski noted that the parameters established when the system was introduced 20 years ago are no longer aligned with the country's current economic and demographic reality.

The analysis will specifically examine the effectiveness of savings within the second pillar and determine what benefits future retirees can expect. Velkovski mentioned that some of the first 147 retirees to receive benefits from both pillars this year have expressed dissatisfaction with their savings levels, potentially due to the relatively short duration of their contributions.