Ivo Patta: Childless people only invested 20% in their own pension. Your letters
10/08/2022
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Description: Senior
Let’s go back to the ten measures that could get our republic out of the biggest mess. A large number of readers, including Ing. Ivo Patta, who strongly disagreed with the seventh point, i.e. with the pension reform. We present its text without security interventions. As is the rule of the Regional Newspapers.
“I read ten points from the article Nationalizing Energy and Water. Return the future to the earth. Not to rob pensioners,” writes Ivo Patta in the introduction.
“Unfortunately, in the Ten Commandments, point 7. Pensions – a real reform, you promote not a pension reform, but a PENSION reform for the benefit of the banks and their pension funds. I am not very surprised, because the laws on social insurance and pension insurance lie already in their name (it is actually a tax). I drew attention to this in the reader’s post under the article Kalousko’s Ten. Pensioners are doing very well. And that’s crazy. Comment by Štěpán Cháb (see picture). The response to my discussion post was 288 hearts, i.e. that I attracted a lot of readers with my comment. It is at the attached address to my post lecture from the conference at the University of Economics in Prague on the subject of AUDIT OF THE STATE PENSION SYSTEM. I have rightly attracted many readers, because I have been dealing with social reforms since 2002, and in 2021, the book EKONOMŮM TO MYSLÍ CHERNOBÍLE was published by the Verbum publishing house. Subtitled NEW DEAL FOR THE 21ST CENTURY.
Where is the problem? In point 7. Pensions – real reform, you promote savings for all, regardless of the fact that
1) WORKING parents of children directly (!) finance their parents’ pensions from social insurance contributions (hereinafter referred to as SP).
2) At the same time, working parents massively invest the financing of their children’s education on their own pension in the continuously (intergenerationally) financed state pension system!
Those who only worked saved currently 1.8 million crowns (high school student) and up to 2.8 million crowns (university student) on raising their children, and only financed their parents’ pensions from their Social Security contributions. For their own pension, the childless invested only 20% of the amount of the assessed old-age pension, and that is financing the education of others’ children from part of their taxes used, for example, for education. I will present one astonishing figure: In 2021, childless pensioners and partly parents of only one child tunnelled out of the SP contributions of foreign children, DEFECTIVE ACCOUNTING METHODOLOGY USED BY THE ČSSZ IN THE ADMINISTRATION OF THE STATE PENSION SYSTEM in the amount of 51.6 billion crowns! What is even worse is that by financing pensions for childless pensioners, the state convinces young people that it is enough to work, there is no need to raise children to ensure a happy old age.
For a better understanding of what concerns the financing of pensions, they quote Jiří Rusnok: “Individuals who do not invest in PAYG through their children must participate in old-age savings through II. pillars”; And I quote further: “The problem with PAYG is easy and has an easy solution. Today’s pay-as-you-go system (PAYG) pays pensions even to those who did not invest in it, i.e. did not contribute. Today we have more and more pensioners who had no children or very few children, which is in stark contrast to their pensions. PAYG contributions are a payment to our parents, they are not contributions to our future pensions. The solution is for Pillar I (PAYG) to only pay pensions to those . who paid “contributions” to it, and those can only be children in the continuous system.” Source: Rusnok J. and spol., PENSION REFORM FOR THE CZECH REPUBLIC (Innovative approach), Prague 2004.
But am I a useful member of society if I boast of four offspring. This is how, ladies and gentlemen, the economic and social stability of the future of our republic is built.
It is good that the ten were accompanied by strong criticism, but also acceptance. Ing. became the chairman. Ivo Patta is of course right. The pension system is a complex organism into which politicians are justifiably afraid to enter. Every intervention threatens to collapse the entire system and bury social peace in the republic. The point of the ten was not to create dogmas, but to provoke discussion. Which it did.
Have more children? Or being childless with the tolerated luxury of one child? Grandma please. The former our pension system, the latter would mean from a global point of view that we would start falling over the hypothetical rantle of the planet Earth. Sustainability. Although ecology is a desecrated word, it is a word that we should hold on to. The developing world and Africa are doing “three and more children” on their pension system, and midwives are enough for them. We falter in this. But if we start racing with them, we will probably all lose.
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Posted by: Stepan Chab