Pension reform is bad, says RRZ

The pension reform proposed by Labor Minister Milan Krajniak (Sme rodina) does not address the manyfold problems of the pension system and includes measures that might put the public finance’s long-term sustainability at risk, says RRZ, the fiscal responsibility council. The previous government made the pension system unsustainable and RRZ admits a need for reform. The key problem of the reform is the parental benefit, which will put a huge strain on public finances. The proposed automatic increases in pensions will be very costly, too.

(RRZ)