Penzijní fond Komerční banky head Pavel Jirák says right now it is difficult to guess whether shareholders in today’s funds will be interested in getting involved in the second pillar. One reason is that the detailed parameters of the system are not yet known. If too few people are interested in the second pillar, then banks will be reluctant to get involved.
The long-awaited pension reform could have serious constitutional flaws. The majority of lawyers asked in a “voice of the elite” survey conducted by Czech Position came to this conclusion, primarily because of rules for joining pension funds will most probably be voluntary, but people will not be able to subsequently change their minds.
Pension reform could have been a bigger catastrophe, but we could also breathe a similar sigh of relief when a tram only runs over one of our legs. The change that the center-right government led by Prime Minister Petr Nečas wants to push through will be a voluntary trap — you can walk into it of your own accord, but you won’t be able to voluntarily walk back out, writes Social Democrats (ČSSD) shadow minister Jan Mládek.
There is no ideal fix for the Czech pension system. While each solution has its pros and cons, ranging in impact depending on the stage of a society’s economic and demographic development, the model that requires people to speculate in pension funds — as is used in Hungary — is failing, writes Markéta Šichtařová, chief economist at the financial advisory Next Finance.
Some important points need to be considered in the pension reform debate. While Minister of Finance Miroslav Kalousek has said it is a question for a long weekend, it might take longer to look at how the money will be guaranteed, where it will come from and who will administer it. The three parties in the governing coalition hope that a proposal will be ready by the end of February.