Text file: 9070.txt
author: Burek Man
downvotes: 3
end consideration date: 2018-04-03
id: '9070'
number comments: 2
number views: 2006
proposal type: Competent authority response
response: 'Response by the Ministry of Labour, Family, Social Affairs and Equal Opportunities

  With regard to the submitted proposal, we would like to start by pointing out that
  the Law on Pension and Disability Insurance (hereinafter referred to as "ZPIZ-2"),
  as one of the four systemic regulations governing the field of social insurance,
  stipulates in Article 8(1) that compulsory pension and disability insurance is financed
  by the insured, employers or, in certain cases, by the Republic of Slovenia. Compulsory
  pension and invalidity insurance, like other compulsory social insurance, is based
  on the principles of intergenerational solidarity and reciprocity, which are directly
  linked to the principle of pay-as-you-go financing. This means that active insured
  persons and other contributors provide the means to pay pensions to beneficiaries
  through pay-as-you-go financing. Unlike a funded scheme, where insured persons can
  check at any time how much they have accumulated in their account, in a pay-as-you-go
  scheme contributions are used up on an ongoing basis, which is why it was socially
  agreed at the outset of the scheme''s design that there should be a clear demarcation
  between how much of the burden for the payment of individual accrued benefits should
  be shared between funding from the worker''s contribution and funding from the employer''s
  contribution. The contribution rates for the contribution to pension and invalidity
  insurance, the contribution to compulsory health insurance, the contribution to
  parental care and the contribution to employment are laid down in the Act on Contributions
  to Social Insurance (hereinafter: the Act on Contributions to Social Insurance),
  which sets out the contribution rates to be borne by the insured and the rates to
  be borne by employers.

  However, there are a number of other systems linked to the current system of social
  security contributions, one of which is the tax system. According to Article 159
  of the Social Insurance Act (ZPIZ-2), the power to collect contributions for compulsory
  pension and invalidity insurance is vested in the tax authority. The collection
  of contributions includes the supervision of the calculation and payment of contributions,
  the keeping of records, the collection and all other activities necessary to ensure
  that the taxable person''s obligation to pay contributions is fulfilled. The contributions
  of the insured person and the employer are paid into different accounts under the
  applicable rules, and therefore the only way to control the calculation of contributions
  is to split the contribution between the contribution of the insured person and
  the contribution of the employer.

  Although in our reply to your proposal we have drawn primarily on the legislation
  governing pensions and invalidity insurance, we would point out that the system
  of collecting contributions is in principle the same for all social security schemes.
  In view of the above, we consider that the proposal to simplify all social security
  contributions is not suitable for further consideration.'
response date: 2020-01-08
response due date: null
sent date: 2018-03-13
title: Simplification of contributions
upvotes: 23
url: https://predlagam.vladi.si/predlog/9070
