Financing of National Pensions
The national pension expenditure is financed in full by the State via tax revenues according to the pay-as-you-go (PAYG) scheme. In 2019, at total of 2.3 billion euros were paid in national and guarantee pensions.
A small buffer fund, the National Pension Insurance Fund, has been legislated for the national pension in the National Pensions Act. The fund has to contain assets worth at least 3.5 per cent of the total annual expenditure for national pensions. At year-end 2019, the fund assets amounted to 75 million euros, which is 4.1 million euros above the required minimum.
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