Senate passes legislation on "pre-retirement" pension

Prague, Oct 25 (CTK) - The Czech Senate passed Thursday legislation that allows people who lose their jobs shortly before they reach retirement age to retire and receive a certain type of old-age pension if they fulfil certain conditions.

Finance Minister Miroslav Kalousek (TOP 09) justified the legislation saying the "pre-retirement" age is a period in which jobs are the most difficult to find.

If President Vaclav Klaus signs the legislation, people will be able to draw this type of early pensions under an amendment to additional pension saving as from January.

Kalousek said the condition for drawing the pension is a sufficient amount of money in the third pillar, or a supplementary social insurance policy.

He said people must be capable of drawing 30 percent of the level of the average national salary from their third pillar savings for a period of three years before their title to an old-age pension arises.

The 30 percent now amounts to about 8000 crowns.

He said people can retire no more than five years ahead of their regular retirement age. This can also include people in difficult professions, Kalousek said.

The state will not cut the sum to be paid out later as the old-age pension and the state will pay health insurance for the people in pre-retirement.