Contribution of CZK 500 to the pension: Applications for educational allowance start

Contribution of CZK 500 to the pension: Applications for educational allowance start
Contribution of CZK 500 to the pension: Applications for educational allowance start

Who is entitled to pension education allowance?

From 2023, old-age pensioners will receive an allowance in the amount of 500 crowns per month for each raised child – the so-called educational allowance. Some will get it automatically, others will have to ask for it. The reception of applications begins on September 1, the Czech Social Security Administration (ČSSZ) confirmed today.

Starting with the pension for January 2023, all pensioners will receive a contribution – if the conditions are met. That is, even those who retired earlier (by the end of 2022). The rules for “new” and “old” pensioners will be practically the same. There is no ceiling on the number of children for whom educational allowance can be drawn.

How to apply for tuition fees?

The allowance is automatically given to women who retired earlier due to the number of raised children (in the words of the law: their retirement age was determined taking into account the raised children).

“These women will receive information about the increase in their old-age pension in the form of a valuation notice, which the Czech Social Security Administration will send out at the turn of the year. Recipients of old-age pensions therefore do not have to be active in the matter of child-rearing allowances, since when increasing their old-age pensions, we will base them on the data on the number of brought-up children that we have in our records,” the office writes.

Other interested parties must fill out a grant application. If they retired or will retire before January 1, 2023, they can apply for the allowance until the end of 2024 at the latest. The form is available on the CSSZ ePortal.

How will tuition increase the pension?

Child care allowance of 500 crowns belongs to the percentage of the old-age pension. It will be subject to regular or extraordinary valorization – so every year it should automatically increase in proportion to the pension itself.

Only those who have met the standard conditions for entitlement to an old-age pension – i.e. a pension insurance period of at least 35 years (including replacement periods) will receive the allowance. This could be shortened to 25 years in the future, advocates the Minister of Labor and Social Affairs Marian Jurečka.

In practice, people who previously received a disability pension and it was only “transformed” into an old-age pension will not be eligible for education allowance, because they did not fulfill the required period of insurance to be entitled to an old-age pension. And as we wrote at the beginning: only recipients of old-age pension – not invalidity, widow’s pension (unless they are also receiving old-age pension) and others – are entitled to education allowance.

When can someone other than the mother apply for child support?

Only one of the couple can use the allowance at any one time, the overwhelming majority will be women. If the child was raised by more than one person, only the one who “personally took care of the child to the greatest extent” can receive the allowance. “This applies even if, for the same child, his upbringing was taken into account when determining a woman’s retirement age,” reads the amendment approved last year.

The child’s father or another person can also apply for the allowance. The condition is that he/she personally cared for the child to the greatest extent. An affidavit should be sufficient for this. The office can then continue to investigate how it really was. In practice, it can be based on testimony or available information about previous employment, place of residence, taking parental leave, etc.

What if the mother dies before the father?

Unfortunately, it does not follow from the law that the father (or another person) is automatically entitled to an allowance if the child’s mother died before retiring. For the father, the aforementioned affidavit regarding “the greatest care” will therefore be crucial. When no one else applies for educational allowance, the office has limited possibilities in practice to prove that such a statement is not true.

The amendment does not allow the father to take over the allowance that originally belonged to the mother. Therefore, if she starts drawing it and dies before the man, the contribution will no longer automatically pass to him and will be forfeited.

What if someone wrongfully receives educational benefits?

What happens when someone wrongly gets education and finds out about it later? Then the pension will be reduced for the original recipient (but only starting from the following month, not retroactively) and, on the contrary, it can be increased for another person who personally took care of the child to a greater extent.

How is a child’s upbringing assessed?

The amendment does not address how a parent (or other person) actually raised their child. Therefore, with regard to the pension contribution, the parent bears no responsibility for the fact that the child committed a crime, did not go to school or otherwise did not conform to the general idea of ​​proper upbringing. Proving whether the parent did their best or had a part in it would often be complicated or impossible.

The law only contemplates the opposite situation: A parent (or other person) who has committed an intentional crime against a child against life and health, against freedom and rights to the protection of personality, against human dignity in the sexual area, or against the family, will not be entitled to the allowance. to children under the Criminal Code or similar intentional crimes under previously valid legal regulations. And not only as a perpetrator, but also as an accomplice or participant.

Regarding the length of the necessary education, three provisions in the amendment or in the current Act on Pension Insurance may come into play:

  • The condition of bringing up a child is met for the applicant for the allowance, if his personal care of the child until reaching the age of majority has lasted for at least ten years.
  • If he/she has taken up the upbringing of a child after reaching the eighth year of his/her age, the condition of upbringing is fulfilled if he/she has personally taken care of the child until reaching the age of majority for at least a period of five years. This does not apply if he/she stopped caring for him/her before reaching the age of majority.
  • If the child died after reaching five years of age, personal care from birth to death is sufficient.

Why is education introduced?

The allowance is intended to reduce the gap between men’s and women’s pensions. While men received an average of CZK 18,919 this June, women only received CZK 15,788. Among other things, this is due to the fact that women usually take care of children, they lose years at work, and thus the wages they receive are reduced. This is also reflected in lower pensions. The pension commission headed by economist Danuša Nerudová therefore also proposed a bonus for raised children.

Jurečka would also like to return to the system where women who raised more children could retire earlier. Today, the system is set so that around 2030 everyone will retire at 65. The retirement age for men and women is gradually being equalized. He spoke in detail about other plans in an interview for Peníze.cz.

Petr Kučera

Editor-in-Chief of the Peníze.cz website. It focuses on a wide range of personal finance and consumer topics. He graduated from the Faculty of Law of Charles University in Prague, but he likes the media even more than paragraphs. He led the coverage of the Czech… More articles by the author.

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