The ANO movement has lodged a proposal with the Constitutional Court to repeal part of the government’s amendment on shortening the June pension indexing. The average pension will increase by 760 instead of 1770 crowns. The government had decided to change the extraordinary pension indexing due to necessary budget savings, which would save 194 billion crowns for this year alone. ANO announced that it would turn to the Constitutional Court regarding the amendment’s approval process and alleged retroactivity.
71 ANO MPs signed the proposal and were professionally supported by constitutional lawyer Jan Kudrna, according to the head of the ANO parliamentary group, Alena Schillerova. President Petr Pavel also admitted doubts about the constitutional conformity of the amendment. Although he signed it, he said he would turn to the Constitutional Court himself if no one else did.
The ANO movement, the largest party in the Czech Chamber of Deputies, has been critical of the government’s decision to cut the June pension indexing. The party argues that the change is unconstitutional and violates pensioners’ rights. Conversely, the government claims that the change is necessary to reduce the budget deficit.
The June pension indexing is a one-time annual adjustment of pensions based on the inflation rate. The change means that pensioners will receive a more minor increase than they would have otherwise. The government has stated that it is committed to ensuring that pensions remain affordable and that the change is necessary to reduce the budget deficit.
The Constitutional Court will now consider the ANO proposal and other challenges to the government’s decision. If the court finds the amendment unconstitutional, it could be struck down, and the June pension indexing would revert to its previous formula. However, if the court upholds the amendment, pensioners will receive a lower increase than they would have otherwise, which could affect their financial security.