Illustrative photo – Extraordinary meeting of the House of Representatives on the proposal to limit the extraordinary June valorization of pensions, February 28, 2023, Prague. Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL).
Prague – Today, after long oppositional obstructions, the House of Representatives approved the restriction of the extraordinary increase in pensions in June. According to the government amendments, the average monthly pension will increase by 760 crowns instead of the expected 1,770 crowns. The opposition MPs did not enforce the rejection of the draft or three hundred amendments to increase the valorization. The bill will now go to the Senate, where the ruling parties have a majority, for consideration. She could make it to Wednesday's upper house meeting. Incoming President Petr Pavel, who will receive the amendment for signature, should announce his position on Friday.
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According to the government, limiting the increase in pensions during the June valuation is necessary to stabilize public finances. The state will save 19.4 billion crowns this year alone. According to the opposition, this is “begging” and “robbing” one of the vulnerable groups of the population and an unconstitutional step, also in terms of the method of approving the amendment quickly in a state of legislative emergency. The opposition will probably turn to the Constitutional Court. Government officials reject any contradictions with the constitutional order.
In the Chamber of Deputies, all 98 MPs present from the government ODS, STAN, KDU-ČSL, TOP 09 and Pirates supported the reduction of the June increase in pensions. All 71 MPs present from the opposition ANO and SPD voted against.
In the case of extraordinary valorization, which by law occurs with higher price growth, the merit percentage part of the pension is raised. According to normal rules, the increase should be 11.5 percent from June. The bill will increase the percentage of the pension by 2.3 percent and, on top of all that, by 400 crowns, which, according to the reasoning, should slightly favor pensioners with the lowest pensions.
The House of Representatives rejected approximately 330 amendments to the increase of 400 kroner fixed amount. The opposition's proposals, which were clearly part of its delaying tactics, ranged from 1,410 crowns to 1,706 crowns with crown differences. In addition, ANO legislators failed in their efforts to move the effective date of the bill so that it would lose its meaning.
By adjusting the June valuation, the state will spend an extra 15 billion crowns on pensions this year, according to the explanatory report. If normal rules were to apply, state budget expenditures would increase by 34.4 billion crowns. The smaller budget impact will continue in the following years. According to the rationale, next year will be a saving of 33 billion crowns from the originally anticipated 58.8 billion crowns spent on additional pensions.
