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OECD Reviews of Pension Systems: Czech Republic

image of OECD Reviews of Pension Systems: Czech Republic

This review provides policy recommendations on how to improve the Czech pension system, building on the OECD’s best practices in pension design. It details the Czech pension system and identifies its strengths and weaknesses based on cross-country comparisons. The Czech pension system consists of a mandatory pay-as-you-go public scheme and a voluntary private scheme. The public defined-benefit scheme has two main components: a contribution-based basic pension and an earnings-related pension. The review also describes the first layer of old-age social protection in the Czech Republic. The OECD Reviews of Pension Systems: Czech Republic is the sixth in the pension review series.

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Voluntary funded pension arrangements

This chapter examines the Czech Republic’s voluntary funded pension system and evaluates it against OECD international best practices on various aspects including coverage and contribution levels, financial incentives, investments, capital requirements, pay-out options, competition and communication. The last section provides policy options to improve the design of the funded pension system.

English

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