“The topic was the presentation of the proposal and principles of the pension reform. We went through all the proposed measures together. What the reform contains are key things that mean that we will have a sustainable pension system in the future for people in their forties and younger years,” said Jurečka after the meeting.
According to him, President Pavel heard everything, for example, they had a debate about the retirement age. However, Jurečka was not too specific, he practically repeated already known things, saying that he will present the final version of the reform in about mid-May.
“If we do nothing, around 2050 the pension account will fall into a deficit of more than 5 percent of GDP, which in today’s prices is a deficit of 300 to 370 billion crowns, which would have to be covered from other parts of the budget,” explained Jurečka.
Changes in extraordinary pension valuations will also affect poorer pensioners
Even President Pavel repeatedly talks about the need for pension reform. Jurečka appreciated his interest on Tuesday. “I see that he is taking the reform very seriously so that we have a link to sustainable finances here, because we cannot put our children and grandchildren in debt here,” stated the Minister of Labor.
On Tuesday, the Ministry of Finance also published data on the results of the pension system in the first quarter of this year, which ended in a record deficit of 25.7 billion crowns.
“Unfortunately, this is not surprising information. We predicted this because we clearly see increases in spending on the pension system. Even though we have the lowest unemployment in the EU, income from insurance premiums does not have time to cover the growing expenses for pension payments. It is an example and a very practical warning that if we do nothing, how the situation will develop and worsen,” Jurečka commented on the report of the Ministry of Finance.
Nerudová: We have already missed the pension reform
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