Czech CSSD calls on govt to withdraw pension schemes bill

The CSSD is opposed to the pension system reform as outlined by the previous government of Mirek Topolanek (Civic Democrats, ODS). Moreover, there is no political consensus on the bill, and the social partners from the Tripartite have reservations about it as well, said Skromach.

The task of the Tripartite, a body comprising representatives of the government, employers and unions, is to help maintain social peace.

Topolanek's government submitted its bill on private pension schemes to the Chamber of Deputies for discussion on May 5, 2009, three days before being replaced by Jan Fischer's interim cabinet of unaffiliated experts.

Before, in March, the Topolanek government lost a no-confidence vote in parliament, initiated by the opposition CSSD.

Under the bill, the current pension funds would be transformed into pension companies. They would offer a broader choice of pension saving opportunities to clients but would not secure a minimal yearly revaluation of the savings.

The clients would gain chance of higher profits but on the other hand they would face a higher risk.

The state would continue granting subsidies to the clients along with tax reliefs.

Skromach said the bill liquidates the present insurance system and endangers the insured people. Instead of creating a completely new system, the CSSD would like the Fischer government to reassess the present system of private pension schemes in which the money of the clients would be separated from the insurers' operational costs, Skromach said.

He said the CSSD was unpleasantly surprised by the government's rejection of its proposal that maternity allowances and allowances for people caring for ill and disabled persons be raised next year.

Irrespective of the cabinet's negative stand, the CSSD will try to push the proposal through parliament, Skromach said.

Autor: ČTK
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