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Czech KDU-CSL head has no vision -- Kalousek ... of Deputies passed an amendment to the pension law that will gradually rise the retirement age to 65 by 2030. Necas and Kalousek who today informed the cabinet about the course of the work on the second phase of the pension reform said the second phase would focus on the funding of the pension system. In this phase the status of pension funds and private pension schemes will be regulated, they said, adding that the basics of the second phase of the pension reform would be submitted to the cabinet by the end of September. Kalousek said the government was paying a special attention to strict regulation of additional pension insurance because it concerns the money that people will be saving for decades. The government wants to motivate people for saving by tax reliefs and it will also motivate the companies that contribute to people's private pension schemes by considerable tax reliefs, Kalousek said. According to a bill which is under preparation the current private pension funds should be transformed into pension societies.
The reform envisions the separation of the assets of the pension societies' share holders from the money of their clients so that even in the event of a society's bankruptcy its clients would not lose their money, Kalousek said. It is not clear whether the government will be able to push the second phase of the pension reform through parliament given its tense relations with the opposition and the lack of unity in the government coalition during votes on important bills. In addition, the Czech Republic will face an important period in the first half of next year when it will hold a six-month EU rotating presidency. Necas said previously that some 3.8 million Czechs have joined private pension schemes. In addition to the mandatory contributions to the state pension fund they monthly contribute to private pension schemes on average 490 crowns. Companies provide contributions to private pension schemes of 800,000 employees. While in the Czech Republic contributions of people and companies to additional pension schemes make up about two percent of GDP, it is four percent in western countries, Necas said. He said Czech pensioners were "extremely dependent" on the state pension system and state pensions are their only source of income in the old age. In the future state pensions should make up four-fifths of their income while the remaining part should be covered from the money saved through additional pension schemes, Necas said. However, this situation could be achieved in two decades, he added. According to experts, the Czech pension system would run debts if it remains unchanged and people do not more participate in ensuring their income for the old age.
(Ceske Noviny)
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