OECD Review of Czech Pension System: cui bono?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F21%3A%230000842" target="_blank" >RIV/04274644:_____/21:#0000842 - isvavai.cz</a>

Result on the web

<a href="https://www.slu.cz/opf/cz/evsesceewelcome" target="_blank" >https://www.slu.cz/opf/cz/evsesceewelcome</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

OECD Review of Czech Pension System: cui bono?

Original language description

The OECD has reviewed the Czech pension system on request of the Czech government, using its specific taxonomy of “pension tiers” that is (shall be) descriptive (not prescriptive) and consistent over a range of countries; The first two OECD tiers are mandatory: a redistributive public tier and an insurance public and/or private tier. The team agrees to the simplification of the benefit formula of the Czech public old-age pension; the basic pension benefit may be adjusted to achieve (political) redistributive objectives. The team dramatically recommends reducing drastically the minimum number of years required to be eligible to both the basic pension and the earnings-related component at the statutory retirement age. The social assistance benefit level shall be indexed to nominal wage growth. A higher social assistance benefit level shall be introduced for people reaching the statutory retirement age. The third pension tier in the OECD taxonomy are all “voluntary pension arrangements” including occupational pension schemes. In Czechia, the occupational pension schemes are practically prohibited due to former ultra-liberal governments. The OECD Review recommends introducing them in a UK or US manner or upgrade the Czech third pillar to the same extent. The OECD thus ignores the specific role of the personal pension schemes worldwide and tries to push through a large neo-liberal reform of the Czech ineffective third pension pillar. We may only decide to choose between the occupational and personal coats of the same neo-liberal solutions which are classified as “soft compulsion” arrangements by disinterested experts. The OECD approach is here very “prescriptive”, it demands a substantial “diversification” of funds into ineffective “voluntary pension arrangements”.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of International Conference Economic and Societal Challenges of the European Economy (Covid and Post-Covid Period)

ISBN

9788075104885

ISSN

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e-ISSN

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Number of pages

12

Pages from-to

192-203

Publisher name

Silesian University

Place of publication

Karviná

Event location

Petrovice u Karviné

Event date

Jan 1, 2021

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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