The yields of domestic pension funds have been relatively low for a long time, and in comparison with the world, Czechs pay high fees to pension companies. Therefore, plans are being born in the government coalition to create a state pension fund, which is also part of the government’s program statement.
The STAN movement proposes that entry into pension savings be automatically offered when concluding an employment contract. Hospodářské noviny drew attention to this, stating that if the employee did not refuse it, the employer would send either five percent of his salary to the state fund or a private fund selected by the employee.
The system would then allow the employee to leave or re-enter anytime. “In principle, this is the introduction of a public fund, which will be set up with the lowest possible fees and will ideally have a decent yield from relatively safe investments to break the competition of the existing pension savings system,” said Viktor Vojtko, a member of the pension commission and STAN MP. The governing Pirates also support the creation of a state fund.
The responsibilities include conducting research and experiments in a laboratory setting, collaborating with other researchers and scientists to design and implement research projects, analyzing data, interpreting results, and writing up findings for publication.
The Ministry of Finance has also proposed creating a so-called long-term investment product (DIP) as an alternative to the now state-supported products in the financial market (participating and transformed funds and life insurance) focused on financial security in the post-productive age.
With the creation of a state pension fund being part of the government’s program statement, the government aims to make pension savings more attractive, and these proposals in the third pillar are set to be discussed in the coming weeks.