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12.03.2008 - Czech Chamber sends pension reform bill to committees

The government-proposed bill that is opposed by the leftist opposition and labour unions will Chambers storms into sprint final ...
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now be discussed in the Chamber's committees. The lower house is to take its definitive vote on the bill by June.

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The upper house is to deal with it in the autumn. If passed by both houses of parliament, the bill would yet to be signed into law by President Vaclav Klaus. The law would take effect as from 2010. The retirement age in the Czech Republic has been gradually raised since the mid-1990s. Under the current law, it is to stop at 63. At present men retire at the age of about 61, childless women at the age of 60 and mothers earlier, according to the number of children. The bill reckons with the retirement age rising at the same pace, that is annually by two months for men and by four months for women. Mothers of two and more children will still have a chance to retire earlier. Under the bill, the obligatory insurance period would be extended by 10 years, while the years of studies would not be included, except for those who would complete their studies by 2010. The centre-right government of the ODS, the Christian Democrats (KDU-CSL) and the Greens has divided the pension reform into three stages that should be completed by the 2010 general election. The first stage is based on the bill that the Chamber approved today. The second stage would concern changes in optional pension insurance and the third would introduce the possibility of saving in funds, on the basis of individual pension accounts. The government coalition and opposition were to reach agreement on the pension reforms by last Christmas, but the negotiations practically collapsed. The opposition Social Democrats (CSSD) say they want to debate the whole reform and not only its first stage and they oppose the idea of sending a part of insurance to funds. The leadership of the CMKOS trade union umbrella organisation has criticised the rise in retirement age as well as other planned stages of the pension reform.

(Ceske Noviny)


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