PRAGUE, June 7 The Czech Finance Ministry has
three options for abolishing pension reforms introduced by the
previous centre-right administration by January 2017, a Czech
daily paper reported on Saturday.
Returning the pension system to the state was one of the
main goals of the ruling Social Democrats, elected in October
2013, only a couple of months after the reforms were introduced.
The pay-as-you-go pension system has constantly created
deficits, the latest a 50 billion Czech crown ($2.5 billion)
deficit at the end of 2013.
The previous government allowed people to divert part of
their social security payments to private pension accounts from
The aim was to help them build up savings to mitigate the
risk of lower state pensions in future due to an ageing
The finance ministry has three options for abolishing the
reforms, Mlada Fronta Dnes reported.
The first two would let people keep what they have saved in
the reformed scheme, including money from the state.
The third option, which the ministry does not recommend,
would take back money people had received from the state.
A finance ministry spokesman declined to comment on the
"The ministry takes part in a working group established to
deal with the pensions and it will wait for the outcome of this
group," he said.
($1 = 20.1279 Czech Korunas)
(Reporting by Robert Muller; Editing by Erica Billingham)