The government approved the pension reform | iRADIO

Representatives of the government coalition are to comment on the results of the meeting in the afternoon. There is consensus in the cabinet on the adjustments. According to the coalition of five, pension adjustments are necessary because the Czech Republic is aging and thus creating a debt in the pension system.

According to Prime Minister Petr Fiala (ODS), the reform should be based on five principles. A pension period of 21.5 years should remain guaranteed, which should be adapted to demographic trends in Czech society. “It’s fair, it’s predictable, and everyone will know their retirement age in their 50s,” Fiala said.

Another part should be support for families or help for vulnerable groups – it should be based on doubling the amount of minimum pensions. Another principle is earlier retirement for demanding professions. “We work with the recommendation of health experts and establish several categories that clearly define who will benefit from the benefits resulting from the demands of their work,” added Fiala.

And finally, the reform should reflect an increase in income for working pensioners. “We want to achieve this with a 6.5 percent reduction for seniors with gainful activity,” added Fiala.

Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL) said that the reform will help ensure decent pensions for future generations and prevent the creation of a huge deficit in the next 10 to 15 years. If the government did not approve it, it would be necessary to solve these deficits either by significantly reducing pensions or by increasing taxes and levies. “Basically, there is no other option,” said Jurečka.

“The reform includes measures that support and appreciate parents for their dedication to raising children and educating future payers. He also appreciates those who care for their loved ones who really need help. For the first time in history, we are able to appreciate these two groups and not punish them for acting responsibly,” he added.

The House of Representatives could begin discussing the amendment at the turn of May and June.

Without change, the system is unsustainable

Expenditure on pensions currently accounts for about a third of state expenditure. Last year, 685.3 billion crowns were paid out on pensions. Year-on-year, the amount increased by 97.2 billion crowns, i.e. by 17 percent. However, incomes rose by only eight percent, and they do not have time to cover expenses.

The pension insurance system ended up with the highest ever deficit of 72.8 billion crowns. It’s around a percent of GDP. According to earlier data from the Ministry of Labour, in a few decades the annual deficit could correspond to up to five percent of GDP, in today’s values ​​it would be around 350 billion crowns.

According to economists, the pension system is not sustainable without changes. The opposition rejects the proposals. According to the opposition movement ANO, the government coalition is scaring people, refusing to discuss reform with it. “Regarding the retirement age and the slowing down of the growth rate of new pensions, we will not be able to come to an agreement,” said deputy Aleš Juchelka (ANO). These changes also bother the second opposition movement – ​​the SPD.

Neither the trade unions, the council for the disabled nor the council for the elderly disagree with the government’s plan.

peak, brightness, CTK

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