Labour ministry drafting plans for scrapping second pillar of pension system

The Labour and Social Affairs Ministry is preparing a proposal for scrapping the second pillar of the pension system, introduced by the former center-right cabinet of prime minister Petr Nečas, which would cushion the impact on those affected by the move. Under the proposal, people who joined the second pillar would be allowed to transfer not only the money they invested but would get to keep the state’s contribution to their social security insurance as well. The government has yet to decide on when the second pillar will be scrapped. Prime Minister Bohuslav Sobotka favours January 2016 but Finance Minister Andrej Babiš’ ANO party is advising caution for fear that the move could spark a wave of legal complaints both from clients and financial institutions.