|
||||||
|
|
|
|
|
|
|
|
|
 |
 |
 |
 |
Support Global Action on Aging!
Thanks! |
 |
Government
harmonizes law on private pension plans with EU legislation Interfax news, April 21, 2003 Prague. (Interfax-Europe) - The
Czech government has amended the law on private pension schemes to bring
it into line with EU norms, says government spokeswoman Anna Starkova. The newly amended law will
enable Czech pension funds to invest in shares traded on regulated markets
of OECD countries. Currently, they can only invest in foreign bonds.
Pension funds will also now be allowed to purchase real estate. In
addition, people from the EU working in the Czech Republic but not
residing there will also be able to become clients of Czech pension funds.
Under EU legislation, a
different retirement age for men and women is discriminatory. Therefore,
as of 2004, each pension fund client will have the right to an old-age
pension from private pension funds at the age of 60. The amended law did not make
any changes to state support. The Finance Ministry said recently that it
planned to limit state support for private pension insurance. If approved,
these measures could take effect in 2004-2006. Under the current pension
plan scheme, the state contributes both directly and indirectly, in the
form of a tax deduction. The current pension scheme in
the Czech Republic is based on a compulsory social security system. In
1994, the system was expanded to include private pension funds, which
receive contributions from the government. Although fund membership has
become rather popular, contributions are very low and account for less
than 3 % of the average wage, according to analysts. Private pension funds launched
activities in the country in 1994 and registered 2.6 mln clients at the
end of 2002, an increase of 51,000 yr/yr. The largest pension funds say
they saw their number of clients rise by dozens of percent in 1Q 2003. Copyright
© 2002 Global Action on Aging
|
