Throughout the last 20 years, pension reform has been a crucial topic of public debate in the Czech Republic. Since the major overhaul of the pension systems in 1995, which transformed the previous socialist model to a new one that would fit the market economy, many reform steps have been taken. Speaking for the policy makers and key stakeholders of the Czech society, it is appropriate to say that we believe the pension reform is an ongoing process that requires well deliberated and carefully measured steps.

The general election of 2017, while seen by some as ground shaking, did little to redraw the political landscape of the Czech Republic. Despite the fact that new parties gained popular support and some of the traditional parties declined, the parties that were represented in the previous government still hold the majority in the Chamber of Deputies. After some difficult negotiations, a new government was inaugurated in June 2018 and its composition in terms of political parties is very similar to the last functional one.

And what does it mean for the pension reform agenda? The continuity and relative political stability should lead to an unchanged approach. The former government took careful steps and was mainly focused on the aspect of pension adequacy and the social dimension of pensions rather than economizing at the cost of the pensioner welfare. We should be seeing a very similar trend in the coming years.

The first signs that the trend has not shifted can already be observed in the latest Pension Act amendment. In the first half of the year, increases to the overall generosity of the pension system have been passed through parliament and should come into force in September at the latest.

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