Saturday, 3 August 2019

Senate consents to abolition of second pension pillar

11 December 2015

Prague, Dec 10 (CTK) - The second pension pillar within which some 85,000 people sent money for their old age to private funds will cease to exist during 2016 and the savers will get the money back, according to a Czech government bill the Senate passed yesterday.
The pension funds should be abolished as from July 2016 and go into liquidation that should be ended with the transfer of the money and the end of the funds by the beginning of January 2017 at the latest.
The second pension pillar was pushed through by the rightist government of Petr Necas (Civic Democrats, ODS). People were able from 2013 to send 3 percent from their pay-as-you-go state system to their saving accounts with pension companies and add 2 percent out of their pockets.
At the same time, the Senate approved changes to the third pension pillar connected with the end of the second pillar.
The amendments make private pension savings more attractive.
Besides, they allow parents to save for their children´s pensions.

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