Prague, July 24 (CTK) – The deficit of the Czech pension system continued to decrease in the first half of the year and it was at one third of the same period of 2013 and almost at 50 percent compared to 2015, according to the data by the Czech Social Security Administration (CSSZ) CTK has received.
Even so, the deficit stood at 7.51 billion crowns.
According to the report, the situation of the pension system has been improving thanks to a high employment and growing salaries.
Unemployment was at a record low 4 percent in June, the lowest since 1998.
The pension system had a surplus in 2008 for the last time. In 2009, the deficit reached 30.5 billion crowns, in 2012 and 2013 it was close to 50 billion crowns. Since then, it has been decreasing thanks to the favourable economic situation.
Some experts say the favourable situation is due to the current boom and warn that it can quickly worsen as soon as a next crisis comes.
During the previous recession, the government made cuts and temporarily put a brake on pensions indexation for three years.
The incumbent government of Bohuslav Sobotka (Social Democrats, CSSD) reduced the three-year period to two years. Pensions should be indexed more as from next year.
They should be raised by a half of the growth of real wages instead of the current one third and the rise in the prices of the goods that seniors buy most often.
Various attempts have been made to change the pension system in reaction to the unfavourable demographic development.
However, a new study the Government Office has had done, the pension system is sustainable even without a reform if the state gives a higher percentage of GDP to pensions, strengthens the “third pillar” within which people save for old-age with state contribution, and possibly makes parametric changes.
The authors do not conceal their rather leftist view of the pension system.
CSSD politicians would like the study to be a base for a debate on pensions.
The CSSD leader for the October general election and foreign minister, Lubomir Zaoralek, told journalists on Monday that it is necessary to refute “the legends about the pension system being untenable and indebted.”
He said GDP is growing more quickly than the number of seniors and that last year’s deficit of 16 billion crowns “will be easily paid.”
He rejected proposals to take money from the public system to funds. Sobotka’s government abolished this “second pillar” after it assumed power in January 2014.
Some experts say the government study does not say where the state will take the money for decent pensions of the rising numbers of seniors.
They say it is necessary that people do not only rely on the state pension, but that they try to save money for their old age themselves as well.
According to Zaoralek and the study, the state can help pensioners if they can travel by train and bus for free, for instance.
