Slovenia pays social security benefits to workers who meet the applicable eligibility standards, including minimum length of coverage and other requirements. Under Article 7, Slovenia will add a person's U.S. coverage to his or her Slovenian coverage, if necessary, to meet eligibility rules. If the person meets the requirements based on combined U.S. and Slovenian coverage, Slovenia will pay a partial benefit proportional to the amount of coverage credited under the Slovenian system.

SLOVENIAN SOCIAL SECURITY BENEFITS

GENERAL

The Slovenian social security system consists of a mandatory defined benefit pension financed on a pay-as-you-go basis, supplemented by a voluntary occupational pension system and a voluntary tax deductible savings scheme for employers and their employees. This Article applies to the defined benefit system, which is a contributory program that covers almost all residents of Slovenia.

Slovenia pays Benefits in amounts that it bases primarily on a percentage of a worker's average earnings, which varies based on the total number of years of contributions a worker has made into the Slovenian system and his or her sex. The voluntary pension system exists to supplement the basic Benefit and is not subject to this Agreement.

OLD-AGE BENEFITS

Effective with 2013 reforms, the retirement age in Slovenia is age 65 for males and females with at least 15 years of contributions to the Slovenian system. Early retirement is possible for workers who have worked for at least 40 years under the Slovenian system and have attained age 60. Prior to this reform, the retirement age could, under certain circumstances, be as low as 58, and females could retire several years earlier than males.

The Slovenian system requires a minimum of 15 years of coverage for entitlement to an old-age Benefit, but provides incentives in the form of a higher Benefit for workers making additional contributions to the system. In addition, a worker who meets the criteria for an early retirement Benefit is eligible for credits for deferring receipt of his or her Benefit past age 60.

The Slovenian old-age Benefit is calculated as 26% for males (29% for females) of the worker's most advantageous 24 year period of lifetime earnings. If a worker has fewer than 24 years of earnings, Slovenia will base the Benefit on his or her total career earnings. For each year of contribution over 15, Slovenia adds 1.25% to the percentage without limit. Additionally, workers who have attained age 60 and have at least 40 years of contributions are eligible for a Benefit increase for deferring receipt of the Benefit past age 60.

The statutory minimum pension amount since January 1, 2015 has been €199.99 (approximately $215) per month. While there is no statutory maximum pension amount, a worker's average earnings for purposes of calculating a Benefit cannot exceed €3,076.76 (approximately $3,300) per month.

DISABILITY BENEFITS

The Slovenian system pays Benefits to three categories of disability beneficiaries. Category I disabled workers are completely incapable of work. Category II disabled workers have lost at least 50% of their work capacity. Category III disabled workers can work at least 4 hours per day, but not without prior rehabilitation.

In order to qualify, workers age 30 or older must have worked for 1/3 of the period between attainment of age 20 and the date of disability onset. Workers age 21 – 29 must have worked at least 1/4 of the same period, and workers younger than 21 must have worked at least 3 months. In addition, Category II disabled workers must either be older than 55 or unable to be rehabilitated.

The amount of a disability Benefit depends on the worker's most advantageous 24 year period of lifetime earnings, the age at which he or she became disabled, and his or her sex. If a worker has fewer than 24 years of earnings, Slovenia will base the Benefit on his or her total career earnings. Workers who are disabled at an earlier age receive a higher percentage of the earnings they accrued prior to the disability onset, with a minimum of 36% for males and 39% for females. Category III disabled workers only receive a partial Benefit based on a number of different factors, including their ability to be rehabilitated.

The statutory minimum pension amount since January 1, 2015 has been €199.99 (approximately $215) per month. While there is no statutory maximum pension amount, a worker's average earnings for purposes of calculating a Benefit cannot exceed €3,076.76 (approximately $3,300) per month. The statutory minimum pension does not apply to Category III disabled workers.

SURVIVORS' BENEFITS

Survivors' Benefits are payable to the worker's widow(er)s, divorced spouses, surviving partners/cohabitants, children, stepchildren, adopted children, grandchildren, parents, adoptive parents, and grandparents.

In order for survivors to be eligible to receive a Benefit, the worker must have been either in receipt of or eligible for an old-age or disability Benefit. In cases where a worker's death was related to an injury that he or she sustained at work, this requirement is waived.

Surviving spouses must be at least 53 at the time of the worker's death (receipt of the Benefit is deferred until age 58), disabled, caring for a child of the worker, or give birth to a child of the worker within 300 days of the worker's death. Surviving partners/cohabitants must additionally have either cohabitated for the 3 years prior to the worker's death or have cohabitated for at least the past year in case they had a child. For divorced spouses, the spouse must have been entitled to a maintenance right (alimony) prior to the worker's death. Any spouse, partner, or cohabitant is ineligible to receive a Benefit if he or she remarries or enters into a registered cohabitation prior to attaining age 58.

Children of the worker can receive a Benefit until age 15 under any circumstances, age 18 if registered at an employment office, age 26 if attending a secondary or tertiary level educational institution, or without age limit if disabled. Stepchildren, grandchildren, and adopted children must have additionally been in the worker's care at the time of his or her death. Parents, adoptive parents, and grandparents must have likewise been in the worker's care at the time of his or her death.

The amount of a survivors' Benefit varies depending on the number of other entitled beneficiaries. If only one survivor is eligible, then he or she receives 70% of the Benefit to which the worker would have been entitled. Two survivors will split 80% of the worker's Benefit, while three survivors will split 90%. Four or more survivors will all split 100% of the worker's Benefit amount.

COST-OF-LIVING ADJUSTMENTS

Benefits rise according to the Swiss Indexation method. This method uses a composite of changes in the consumer price index and changes in national wages to determine cost of living adjustments. Changes in the national wage level account for 60% of the cost of living adjustment (COLA), while changes in the consumer price index account for 40% of the COLA.