Labour minister presents outline of pension reform

Labour and Social Affairs Minister Marian Jurečka on Wednesday presented the outlines of a proposed pension reform that should ensure a sustainable pension system for future generations. The proposal envisages a gradual increase in the retirement age linked to a higher life expectancy, a different basis for calculating old-age pensions, a lower indexation of pensions and a minimum pension amounting to 20 percent of the average wage. The changes, which must still be approved by Parliament, should come into effect as of 2025. Most of the changes would affect people born after 1966. The present retirement age is 65 for both men and women.