Occupational social security schemes (Chapter 2 of Directive 2006/54)

AuthorKoldinská, Kristina
6 Occupational social security schemes (Chapter 2 of Directiv e 2006/54)
6.1 General (legal) context
6.1.1 Surveys and reports on the practical difficulties linked to occupational and/or
statutory social security issues
As there is currently no system of occupational social s ecurity, there are no surv eys on
this issue.
6.1.2 Other issues related to gender equality and social security
Maternity benefit is a sickness insurance benefit taken largely by women. If a second
child is born right after (or during) parental lea ve, the benefit is calculated on the basis
of a theoretical wage, which is usually not favourable to th e mother. The second
maternity benefit is therefore usually lower than the first.
In addition, conditions for taking the parental l eave are to some extent problematic. As
described earlier, parental allowance, paid from state social sup port, is paid monthly and
parents can (under certain conditions) decide the monthly level of the allowance. The
total amount for each child is CZK 220 000 (approx. EUR 8 800). If children are born
quickly one after the other, the total amount of CZK 220 000 always applies to the
youngest child in the family, so that in such a case, part of the total amount for the
previous child gets lost, as the previous parental allowance ends as soon as a new one is
6.1.3 Political and societal debate and pending legislative p roposals
The Ministry of Labour and Social Affairs is working on pension reform and the
Commission for Equal and F air Pensions has b een established for this purpos e.
Narrowing the pension gender gap has been declared among the most important
Difficulties in taking parental allowance when multiple children are born i n quick
succession should be tackled soon and, indeed, a proposal for amending the existing
rules is currently pending.
6.2 Direct and indirect discrimination
The system of occupational pensi ons, or to put it better, th e system of pension savings
was established on 1 January 2013 by Act No. 426/2011 Coll., on pension savings. This
Act established a new pension scheme . However, the scheme included almost no aspects
of occupational pensions, even though it was declared to b e a ‘second-pillar’ system. It
was a voluntary system, which could be joined by opting out of th e first pillar with a 3 %
obligatory contribution and at least another 2 % from individual savin gs. The system was
administered by private subjects, called pension companies. However, the Government
proposed to abolish the scheme and Parliament adopted an Act implementing this, Act
No. 376/ 2015 Coll., on termination of pension savings, effective from 1 January 2016.
By this d ate, all the funds acquired under the previous Act were transferred to the third
pillar ‘individual savings’. Participants in the system were granted the right to transfer
the contributions from which they opted out before back to the first- pillar system.
The only example of occupational social security schemes can be found in Act No.
427/2011 Coll. on sup plementary pension savings. The employer, for example, might
contribute to the supplementary pension savings of their employees.

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