Complementary Pension Saving (State-contributory Supplementary Pension Insurance) in the Czech Republic Cover Image

Doplňkové penzijní spoření (penzijní připojištění se státním příspěvkem) v České republice
Complementary Pension Saving (State-contributory Supplementary Pension Insurance) in the Czech Republic

Author(s): Jan Molek
Subject(s): Welfare systems, Public Finances, Fiscal Politics / Budgeting
Published by: Vysoká škola evropských a regionálních studií, z. ú.
Keywords: pension; pension fund; supplementary pension insurance; participantʼs contribution; state support; state contribution; supplementary pension insurance participant; appraisal of savings;

Summary/Abstract: State-contributory supplementary pension insurance (Complementary pension saving) is a popular product in the Czech Republic. According to the Association of Pension Funds of the Czech Republic, as of 31st December 2012 the pension funds kept files of approximately 5.15 million participants, with savings amounting some 246,594 billion crowns (as of 31st December 2011 the pension funds kept files of approximately 4.60 million participants, with savings amounting some 232,052 billion crowns). In the long run, the pension funds show stabilized financial results, however, in return for low revenue. The statecontributory supplementary pension insurance in the meantime does not fulfil its primary function, moreover, without significant support provided by the state the scheme is not even capable of competing with life-cycle mutual funds or other substitutes offered on the financial market.

  • Issue Year: 2014
  • Issue No: 1
  • Page Range: 37-47
  • Page Count: 11
  • Language: Czech