The situation is different for the Agency’s internal processes, where paper-based procedures still prevail. Applications are processed using outdated systems and depend on a small group of specialists familiar with a specific programming language. The current process—from submitting a paper application, scanning it into the system and calculating the pension to a subsequent “four-eyes” review and issuing the decision—involves 62 practical steps. As the Agency processes 150 to 400 files a day for old-age and early-retirement pensions, departments physically transfer files between them using shopping trolleys. Manual work accounts for as much as 77% of the pension-award process.

Since the 1990s, Slovakia has used an IBM programme written in COBOL to calculate pensions. Although stable and secure, the system will become increasingly difficult to maintain. COBOL is an ageing programming language with a shrinking pool of specialists, which the SAO SR considers a significant risk to the secure sustainability and future development of the entire system.

The audit also found that pension insurance information systems are fragmented and insufficiently interconnected. In addition to the main system, a further 13 subsystems are in use. More than €8 million has been spent on their operation and development since 2020.

“The Agency’s managements have recognised and continue to recognise the need for comprehensive, system-wide digitalisation, and the national auditors view this objective positively. The problem is that under the Social Insurance Act, every new management brings new strategies, often conflicting with the objectives of its predecessors. We therefore believe that digitalisation should become a priority not only for the Agency’s management, but that the Government itself should also take an interest in participating in decisions on the Agency’s strategic direction, because its activities affect the lives of every person in Slovakia,” Andrassy said.

Two digitalisation projects intended to be financed from EU funds and expected to deliver significant savings in time, staffing and costs were not implemented because their deadlines were missed. The Agency is now preparing another digital transformation project, the Unified Benefits Administration System, which is intended to digitalise not only pension administration but also the Agency’s other areas of activity. The SAO SR views this approach positively. The project is expected to cost €30 million and be completed by 2032.

The Social Insurance Agency also frequently has to respond to unpredictable legislative changes without a clear assessment of their financial or operational impact. Since 2020, the Social Insurance Act has been amended 57 times, with some changes requiring extensive modifications to information systems.

One example was the recalculation of early-retirement pensions following the completion of 40 years of service. Although the change took effect in January 2023, the first mass recalculations were not launched until April 2024, more than a year later. A similar challenge has arisen with the planned recalculation of pensions for periods of childcare, effective from January 2026. Approximately 800,000 to 1 million pension recipients will need to be assessed, with around 400,000 potentially entitled to a higher pension. As of 30 June 2026, the Agency still did not have detailed internal guidance in place because its IT systems first needed to be modified.

The SAO SR also highlighted cases where the introduction and subsequent cancellation of legislative measures placed unnecessary pressure on the Agency’s budget and capacity without producing a lasting benefit. Andrassy cited the parental pension introduced in 2023 as an example.

“Because of the specific nature of this benefit—particularly the need to obtain information about pensioners’ children and to recalculate the benefit for service pension recipients—the Agency had to develop a new information system costing €2.6 million. After two years, the parental pension in its original form was abolished and replaced by a different mechanism, known as tax assignment. From the auditors’ perspective, this is an example of inefficient use of public funds,” the SAO SR President said.