RRZ, the fiscal responsibility council, wants changes in the pension reform draft
RRZ, the fiscal responsibility council, recommends that Labor Minister Milan Krajniak revise its pension reform draft. The draft insufficiently addresses population aging and does not improve the pension system’s long-term sustainability enough. In the Recovery Plan, the government has committed to improve sustainability by at least 1.8% of GDP, but the reform brings just a 0.9% improvement. Its key issues are the very expensive parental bonus, higher pension entitlements during parenthood, early retirement options, and low yields in the second pillar. One positive feature in the draft is linking the pension age to life expectancy.
