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23.06.2008 - Czech govt coalition makes no sense if pension reform fails-Necas

The Chamber of Deputies is likely to vote on the bill this week. "If the bill failed due to [lacking] coalition votes, the sense of the coalition project would dramatically fall close to zero," Necas said, referring to the government of the ODS, the Christian Democrats (KDU-CSL) and the Greens (SZ). He said changes in the pension system are necessary as the Czech society is ageing. Along with the growing life expectancy, the number of people living on pension has been growing as well.

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they receive pension for a longer period than in the past, Necas said. Demographers say the portion of economically active people who contribute to the pension system will be declining. At present seniors make up about 15 percent of the country's population. In 2030 they are expected to make up almost one-fourth and in 2050 one-third of the population. In the beginning of the 21st century, about 1.4 million people over 64 lived in the Czech Republic. In 2050 their number is to reach 2.6 million. Under the new bill, retirement age is to be gradually raised to 65 in 2030. Retirement age has been gradually increasing under the valid legislation for several years already and it would stop at 63 years if the new bill were not passed. The new bill preserves the mothers' right to retire two to three years earlier than the regular retirement age. Other people, too, would be able to retire early, which, however, would affect their pension. The bill improves conditions for pensioners who have for many years cared for their disabled or helpless relatives and whose pensions are very low now. The opposition criticises the bill, as do the unions who recently demonstrated against it outside the Government Office.

(Ceske Noviny)


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