North Macedonia reviews second pension pillar as results fall short

The government of North Macedonia has opened a review of the second pension pillar after the Ministry of Labour and Social Policy said the reform has not delivered the promised benefits for the first 150 retirees. Minister Gjoko Velkovski told television that savings accumulated by members are insufficient to provide sizable pensions, and a commission of experts from the finance, labour and pension funds ministries has been tasked with assessing the system.

The Agency for Supervision of the Pension Insurance with Capital Funding (MAPAS) stressed that the second pillar is meant to complement, not replace, the first solidarity pillar, and that any changes must be based on long‑term analysis and legal procedures. MAPAS noted that around €3.4 billion in citizen savings are already held in individual accounts. Prime Minister Hristijan Mickoski warned that many contributors may be dissatisfied and suggested the possibility of reverting to a single‑pillar system if economic conditions require it. Potential reforms include new investment portfolios tailored to the age of contributors and adjustments to improve returns.