ČSSD ready to lodge complaint over low pensions

Prague, Aug 7 (CTK) - The senators for the opposition Social Democrats (CSSD) will lodge a complaint with the Czech Constitutional Court (US) if the average pension falls under 40 percent of the gross salary, Senate chairman Milan Stech (CSSD) told journalists yesterday.

They will complain about lowered indexation of pensions as the Czech Republic has accepted an international convention under which old-age benefits should reach at least two-fifths of the gross earnings, Stech said.

The upper house is to debate a government bill that is to reduce the growth in pensions as part of its austerity plan.

Stech said due to this, the ratio to the salary could fall under 40 percent.

Stech said the complaint would depend on how the situation would develop.

If the ratio falls under 40 percent, this would contradict not only the International Labour Organisation convention the Czech Republic has joined, but also a part of the charter of fundamental human rights and freedoms on old-age benefits, he added.

"I myself would prompt the complaint. I am an optimist. As the US decided on whether the strongest groups have inadequate pensions given their payment to the pension system, it should adopt the same position to the weakest ones," Stech said.

Martin Potucek, head of the CSSD social commission, said the complaint could be wider and include more "components."

One of its parts could relate to the fact that the Czech Republic still does not have a clearly set age at retirement, Potucek said, adding that its limit was raised every year.

Starting next year, the government wants to increase the old-age pensions less than now.

It is one of the measures with which to curb the deficit and debts.

The pensions will be indexed over a period of three years by one-third of the rise in prices and in real wages. Until now pensions have been raised by the full inflation rate.

The government expects the bill to save 47.7 billion crowns by 2015.

The legislation has been passed by the Chamber of Deputies.

Stech said the CSSD in the upper house would not support the bill.

The CSSD has a majority in it.

According to the Czech Statistical Office (CSU), the average salary reached 24,126 crowns in the first months of the year, while the average old-age pension was 10,740 crowns, or 44.5 percent of the former figure.

($1=20.327 crowns)