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3 clusters · 12 sources · 15 days · First seen 28 days ago · Last updated 13 days ago

North Macedonia pension system reform

Overview

The North Macedonian government is evaluating significant reforms to its pension system to address modern economic and demographic realities. Minister of Social Policy, Demography and Youth Gjoko Velkovski has indicated that the government is considering a reconstruction of the second pension pillar rather than its outright abolition, aiming to ensure higher benefits for citizens.

Working groups are currently analyzing the effectiveness of savings within the second pillar, noting that parameters established two decades ago no longer align with current wage levels and insurance contributions. This follows reports of dissatisfaction from some early retirees regarding their savings levels.

To address service gaps, the government is considering legislation that would allow citizens to purchase up to two years of pension service. This measure targets individuals aged 62 to 64 who have completed at least 13 years of service but lack the 15-year minimum. Under this proposal, the 19.9 percent contribution would be calculated based on half of the previous year’s average net salary for each missing month, up to a maximum of 24 months.

Further reform proposals have emerged regarding the investment capabilities of the second pillar. Nikola Memov, director of PIOM, has called for legislative changes to allow pension companies more freedom to invest in domestic state capital. With over 300 million euros currently directed into the second pillar, Memov suggests that approximately 640,000 insured individuals could potentially become shareholders in state-owned enterprises, such as Chebren and Galishte, with the state company MAPAS overseeing the placements. This proposal includes a tiered risk approach based on the age of the insured individuals.

Entities

Gjóko Velkovski · Government of North Macedonia · Chebren · Galishte · MAPAS

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Nikola Memov stated that the most important task for second-pillar pension companies is the ability to invest more freely in markets. vecer.mk
[○ 1 SOURCE] Over 300 million euros are directed into the second pension pillar. vecer.mk
[○ 1 SOURCE] There is a proposal to consider allowing pension companies to invest in state capital investments. vecer.mk
[○ 1 SOURCE] Approximately 640,000 insured persons could potentially become shareholders in companies such as Chebren and Galishte. vecer.mk
[○ 1 SOURCE] The state company MAPAS would control the placements of these pension companies. vecer.mk
[○ 1 SOURCE] A proposed risk-based methodology would assign higher risk to younger insured persons, lower risk to middle-aged, and no risk to a third category of citizens. vecer.mk

Timeline

13 days ago

[BUSINESS] 4 sources
Pension reform proposed for North Macedonia capital investments
Nikola Memov proposes reforming North Macedonia's pension system to allow second-pillar funds to invest in state capital projects, potentially making 640,000 citizens shareholders in state companies.
28 days ago

[POLITICS] 2 sources
North Macedonia considers reconstruction of second pension pillar
North Macedonia's Minister of Social Policy, Gjoko Velkovski, announced a potential reconstruction of the second pension pillar to address demographic shifts and improve future pension payouts.
28 days ago

[POLITICS] 7 sources
North Macedonia considers law to purchase pension service
North Macedonia is considering a law allowing citizens to purchase up to two years of pension service to meet the 15-year minimum requirement.

Sources

denesen.mk · iportal.mk · makpress.mk · pari.com.mk · plusinfo.mk · prv.mk · republika.mk · skopje1.mk · utro.mk · vecer.mk · vesnik.com · vreme.mk

This summary has been updated 1 time: see revision history