| | I. pillar | II. pillar | III. pillar |
|---|
| type of insurance | Compulsory pension and disability insurance | Compulsory and voluntary supplementary pension insurance | Different types of insurances or savings |
| provider | Provided by the Pension and Disability Insurance Institute | Compulsory insurance is provided by Kapitalska družba; voluntary insurances are provided by mutual pension funds, pension companies and insurance companies | Provided by banks, insurance companies, mutual funds, etc. |
| type of income | Pension from compulsory insurance
(for life) | Supplementary pension
(for life) | annuities, lump sum payment |
First pillar
For the compulsory pension and disability insurance, employees together with employers pay funds into the pension coffers of the Pension and Disability Insurance Institute (ZPIZ).
Second pillar
Compulsory supplementary pension insurance is a replacement for the qualified service benefits. This insurance is paid by employers to employees who perform services which are restricted to a certain age, or services which are hazardous to health. It is provided under the Compulsory Supplementary Pension Insurance Fund.
Voluntary supplementary pension insurance is designed for people who are already included in the I. pillar or are the beneficiary of rights arising from the I. pillar. Special income tax relief is applicable for the paid premiums.
Third pillar
The third pillar comprises various other types of annuity savings or insurances. What is in common is that they enhance social security. However, unlike the II.pillar, the III.pillar does not provide income tax incentive as no special income tax relief is applicable.
The pension insurance system in the Republic of Slovenia is organised as shown below:
