Government to scrap second pillar of pension insurance scheme as of 2016

The government on Wednesday announced its plan to abolish the second pillar of the pension insurance scheme, introduced by the former centre-right cabinet of Prime Minister Petr Nečas, by January 2016. The so-called second pillar of the pension scheme allows people to put part of their pension funds into private insurance companies. Bohuslav Sobotka told the Czech News Agency on Wednesday that the scheme was disadvantageous for the vast majority of people and there was very little interest in it. People who joined the second pillar should get their investments back by the end of 2016. Scrapping the second pillar of the pension scheme was one of the election promises of the ruling coalition.

Author: Ruth Fraňková