One of the most striking proofs that the Czech state operates in a not very effective and above all very expensive style, which is informally nicknamed “from wall to wall”, are the changes in pensions. Just remember the period after the financial crisis around 2010 to 2013, when pension payments were significantly dampened and seniors experienced one of the most challenging periods.
It was really well done
But then it broke, and years of abundance followed, when it really increased again. For a while it could be understood with the justification that it is necessary to catch up on what was neglected. However, the growth of pensions will not and will not slow down. In the end, it was a whole decade when pensions literally jumped to higher and higher levels. The result is that the average pension today is comfortably over 20,000 crowns. According to an international survey, Czech pensioners are doing really well, they even belong to the top of the world and in terms of living standards they are ahead of, for example, Germany or Finland.
But now the trend is reversing again, because the rapid increase in pensions has caused the pension system to be in big trouble and something has to be done about it. The result is often very abrupt changes, with significant cuts in schemes that aim to keep pension growth in line with inflation and real wage growth.
Already at the beginning of the year, the state pulled the emergency brake and significantly crossed out the extraordinary valorization of pensions, which it would no longer have the money for in full. And now he has prepared a straight amendment to the law, which cancels these extraordinary valuations and replaces them with a special contribution in case of need. However, this will not be a fixed part of pensions and will not be further valued. It will disappear at the beginning of the next year and the pension will only be added once a year according to the new parameters.
Foto: Shutterstock
Uncertain money
These are really fundamental changes within the pension system, which will massively slow down pension increases in the coming years. This can already be seen in the increase planned for next year, when pensioners will improve by only 360 crowns, which is one of the lowest amounts in recent years.
Also read: Pensioners are uploaded. Prices are rising sharply for them, they won’t pay off soon. They did a nasty thing to them
But in the end, everything can be completely different. An initiative was filed with the Constitutional Court, which describes the current changes as unconstitutional. So it is quite possible that everything will be reversed and the state will have to pay back to pensioners the really big money that it took from them as part of the reduction in valuations. Especially in the case of this year’s extraordinary valuation, he proceeded retroactively, which is against the law.
Foto: Shutterstock
2023-09-19 12:00:00
#state #return #large #amounts #money #pensioners #Czech #Republic #quickly #package
