Penzijní a stavební spoření
Pension and building savings

Summary/Abstract: The article provides an analysis of the supplementary pension and building savings systems in the Czech Republic in the broader contexts of the Czech pension reform process and EU legislation. The author uses foreign experience to propose changes that he feels would lead to the simplification and the lowering of the costs of the two systems, even in connection with adjustments to the tax regime of the Czech Republic. The Czech supplementary pension savings scheme does not fulfil its essential function: it does not comprise an old-age security instrument; nevertheless, it is accompanied by a contribution from the state. This mirrors the non-purposeful nature of the Czech building savings scheme, which serves only for the allocation of excess liquidity. Most of the funding provided via the building savings scheme is artificially incorporated into „bridging loans“ and, in reality, it serves largely to boost the profits of building societies. The respective building societies and pension companies are redundant institutions. However, the present government of Petr Fiala envisages the continuance of the supplementary pension savings scheme. The form of the 3rd pension pillar is, as abroad, a matter of public choice; however, the Czech system of the coexistence of state contributions and tax support for one product (and its providers) is completely unsystematic. If the state intends to continue to support saving for old age, it is strongly advised that it adopts the new and high-quality pan-European Personal Pension Product (PEPP) legislation.

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