Labour minister unveils proposed amendment to pension system

Labour Minister Marian Jurečka on Monday unveiled a proposed amendment to the pension system under which pensions would be indexed by one-third of the rise in real annual wages, rather than by 50 percent as is the case now, and the state would make up for high inflation by one-off contributions, which would not raise pensions permanently.

Jurečka also wants to tighten the criteria for early retirement. Under the proposal, early retirement would only be possible three, rather than five, years before the standard retirement age and applicants will need to have worked for 40 years in order to be eligible, up from the present 35.

The labour minister said the proposal aims to ensure the long-term sustainability of the system and he sees it as a preparatory step for a broad pension reform. The opposition parties have rejected the proposal.