Retirees will start receiving letters about the valorisation of pensions from mid-February
Updates: 21.01.2022 15:09
Released: 21.01.2022, 15:09
Prague – People with old-age, disability and survivors’ pensions should start receiving letters from mid-February with information on how much they will increase this year due to higher pension prices. They should have added from June. It should be clear at the beginning of February what exactly the pensioners will improve. The Minister of Labor Marian Jurečka (KDU-ČSL) told the press today. The ministry will need more money for pensions and other compulsory expenditures this year than originally planned. Jurečka told ČTK that an agreement on the form of his department’s budget could possibly be next week.
Last year, at the end of September, 2.86 million people received old-age, disability and survivors’ pensions from the Czech Social Security Administration (CSSA). There were 2.38 million old-age pensioners. The ministries of defense or interior have their pension systems. Pensions are always increasing from January. However, the government can be increased exceptionally at other times if they increase by at least five percent during the period under review.
“Valorisation will then take place from June 1,” Jurečka said. According to the Minister, when the pensions will increase will be a clear beginning of February after the publication of January data on the increase.
According to the Pension Insurance Act, extraordinary additions follow the fifth month after the month in which the increase exceeds the 5% limit. The merit part of pensions, ie the so-called percentage acreage, is adjusted. It will rise by as many percent as the number of years last July prices. The consumer price growth index from the statistical office is used. The cabinet is then to issue an order for extraordinary valorisation within 50 days after the end of the month with at least a five percent price increase.
Last mid-November, the former Ministry of Finance, Alena Schillerová (YES), stated that the extraordinary increase could amount to 650 to 730 crowns, according to the estimates at the time. For people with below-average pensions, the amount would be lower, people with above-average pensions would improve more. According to an earlier statement by the head of the National Budget Council, Eva Zamrazilová, approximately 17 or 17.5 billion crowns could be needed for pensions this year.
The ČTK minister said that his ministry would need more money for so-called mandatory expenditures than the original version of the previous government’s budget had calculated. According to Jurečka, the agreement on the new form of the budget of the Ministry of Labor and Social Affairs could possibly be ready next week. “On the one hand, there will be adjustments in the area of savings, in the area of operating expenses. There must logically be adjustments. I’m printing on that, we’re going through individual operating expenses, individual investment items that are planned. said Jurečka. Another roughly three billion will be needed for housing benefits due to rising prices.
The state now manages in a temporary budget. The government has previously stated that, according to the draft state budget, it wanted to have it ready by the end of February. According to Jurečka, it should then be adopted and published in the Collection of Laws by the end of March. “From April 1, we will be in the normal regime,” the minister added.