Below is a clear overview of what you need to know to stay up to date.
Slovenia is entering a new era of pension policy. With the adoption of an extensive pension reform in 2025, the country is redefining both the core pension system and supplementary retirement savings. As of 1 January 2026, major changes have come into effect that are reshaping employer obligations, employee choices, and the long‑term structure of the Second Pillar. Below is a clear overview of what you need to know to stay up to date.
Key Changes to Supplementary Pension Insurance (Second Pillar)
Mandatory Employer Negotiations
From 1 January 2026, all employers with more than 10 employees who do not yet offer supplementary pension insurance must start formal negotiations with employees about implementing a collective pension plan.
Employers have two years to reach an agreement. If no agreement is achieved, the employer must report this to the Labour Inspectorate.
More Flexible Pension Fund Selection
The reform removes age‑based restrictions on investing in higher‑risk pension funds.
From 2026, members of all ages may select dynamic, higher‑risk funds, and are expected to support higher long‑term returns
Higher Limits for Lump‑Sum Withdrawals
Upon retirement, individuals will be able to receive lump‑sum payouts more easily:
- Higher thresholds for lump‑sum withdrawals
- Availability of lump‑sum payments in certain exceptional life situations
More Flexible Pension Annuities
New rules introduce more adaptable annuity structures:
- Flexible payout periods.
- More options for structuring retirement income.
Simplified Transfer of Funds to Heirs
The reform simplifies how accumulated supplementary pension funds are transferred in case of death, offering:
- Clearer rules.
- More options for heirs.
- Faster and more transparent procedures.
Reduced Management Fees
Annual management fees for pension funds will decrease, meaning:
- A greater share of investment returns remains with the member.
- Higher final pension payouts.
Transfer of the Cover Fund to a Mutual Pension Fund
The new law enables pension providers to transfer their cover fund to a mutual pension fund, increasing:
- Competitiveness,
- Flexibility,
- Potential for better returns.
Broader System Reforms Impacting the Second Pillar
Increased Pension Accrual Rate
The pension accrual rate rises from 63.5% to 70% for a full 40‑year working life, improving future pension adequacy.
Extended Reference Period for Pension Calculation
By 2028, the pension base will be calculated over the best 40 years, instead of the current 24. This reduces volatility and supports long‑term wage stability.
Higher Minimum Pensions
Minimum invalidity, survivor, and family pensions will increase. For example, the minimum invalidity pension will increase from €490 to €610 and there will be increases in various survivor and family pension rates. These enhancements reinforce the importance of supplementary savings as a stabilising long‑term pillar.
In Conclusion
The reforms substantially strengthen both the mandatory and supplementary pension systems. For employers, this means new obligations and strategic decisions. For employees, it offers greater flexibility, improved transparency, and more robust long‑term retirement outcomes. As Slovenia modernises its pension landscape, the Second Pillar will become increasingly central to securing financial wellbeing in retirement. To find out more on Slovenian pension reform or its impact on employee benefits, please reach out to our experts:
Andrej Hribar
H&B Practice Leader
GrECo Slovenia
T +38640893396
