The president, representatives of the coalition and the ANO movement will discuss pension reform

Commercial presentation Update: 03/28/2024 00:06
Issued by: 28/03/2024, 00:04

Prague – A meeting between President Petr Pavel and representatives of the government and the opposition ANO movement on the pension reform proposal will take place today at the Castle. The government coalition is counting on raising the retirement age above 65 in line with life extension, with a lower calculation of new pensions, with the introduction of a minimum pension in the amount of 20 percent of the average wage or with an earlier pension for work in a risky environment. The opposition criticizes and rejects part of the plans and the form of the measure, mainly the raising of the age or the lower new pension. ANO politicians have already stated that they would cancel some steps after taking over the government. The head of state wants to contribute to finding an agreement.

Pension expenses are gradually increasing. It now accounts for about a third of the state’s total expenditure. Last year, 685.3 billion crowns went to old-age, disability and survivors’ pensions. Compared to the previous year, 2022, it was 97.2 billion crowns more. Pension expenses thus rose by almost 17 percent year-on-year. The pension insurance system ended last year with a deficit of 72.8 billion crowns. According to calculations, without changes in the setting, the deficit in the middle of the century would amount to around five percent of GDP, i.e. about 350 billion crowns in today’s prices.

Minister of Labor Marian Jurečka (KDU-ČSL) and for ANO his vice-chairman Karel Havlíček, head of deputies Alena Schillerová and deputy Aleš Juchelka will meet the president today at the Castle. Jurečka told journalists on Wednesday that he does not expect to find a compromise at today’s meeting. However, he stated that he could possibly be present at further meetings, if the opposition is willing to do so.

According to the government, the reform is necessary to mitigate the decline and to ensure the sustainability of pensions for future generations. This is mainly due to the postponement of the retirement age and the lower calculation of new pensions. The opposition mainly opposes these measures. YES requests analyses.

The former heads of the pension commissions, Vladimír Bezděk and Danuše Nerudová, agreed on Sunday in the program Otázky Václav Moravec that there should be no retreat from steps to strengthen sustainability and that the coalition and the opposition should seek agreement on their most suitable setting. Pavel already said last year, shortly after his election, before assuming the presidency, that he would like to contribute to explaining the need to carry out pension reform. He also spoke about the fact that cosmetic modifications will not be enough to ensure sustainability.

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