February 1, 2008

CZECH: More Czechs get pensions, more contribute to pension fund

PRAGUE, Czech Republic (CZech Happenings), January 31, 2008: Both the number of pensioners and those who contribute to the state pension fund increased in 2007, Stepanka Filipova, spokeswoman for the Czech Social Security Administration (CSSZ), said. CSSZ registered 2.72 million pensioners, including 2.03 people receiving old-age pensions in the 10-million country, at the end of 2007, which is about 35,400 more than a year before. Some 4.88 million people contributed to the pension fund at the end of last year. This is 32,000 more than at the end of 2006, Filipova said. However, the number of contributors has increased more than the number of old-age pensioners over the last six years. As compared to December 2001, there were over 350,000 contributors and over 106,000 old-age pensioners more in December 2007. At present, there are 2.41 contributors per old-age pension and 1.79 contributors per pension. Pensions include also disability pensions and widow's, widower's and orphan's pensions. "The Czech social system is based on solidarity. The financial contributions of the healthy help long-term ill people, the young help the old," Filipova said. Labour and Social Affairs Minister Petr Necas (Civic Democrats, ODS) says the Czech Republic must react to population ageing and a longer life expectancy. Necas has prepared a bill under which the retirement age will be gradually increased to 65. The government has been working on a pension reform. Author: ČTK Copyright: Ceskenoviny