Income revolution? Equal pension

Professor University of Finance and Administration in Prague Jaroslav Vostatek finished čtyřicetistránkovou analysis with a proposal to make pension reform. The proposal will be presented in June at the conference. According to its basic requirement would rise pensions for people with the lowest incomes.

The basis Vostatkovy variant is the so-called flat-rate pension, which proposes to set at 30 percent of current average wage in the country. Today would be around eight thousand crowns, which would have entitled the state of all. In this variant would straighten up seven percent of seniors today who have a lower income.

In addition to the “common state” retirement pensions would also be the second component, which would be paid from it, how much they earn, therefore, on the paid social insurance. “The purpose of my proposal is to separate solidarity and merit. This income distribution into two components recommended by the World Bank,” said Vostatek.

Vostatek further proposes that insurance from the current 28 percent declined to about 17 percent. The main part of the pension, a pension equal, would still not pay premiums, but the taxes that flow into the state budget. In exchange for a reduction in social security would thus have to raise some taxes.

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