The ANO movement, the largest party in the Czech Chamber of Deputies, has lodged a proposal with the Constitutional Court to repeal part of the government’s amendment on shortening the June pension indexing. The government’s decision to reduce the extraordinary pension indexing would save 194 billion crowns for this year alone, but ANO argues that the change is unconstitutional and violates pensioners’ rights.

The June pension indexing is a one-time annual adjustment of pensions based on the inflation rate. However, the government’s decision means that pensioners will receive a smaller increase than they would have otherwise. The average pension will increase by 760 crowns instead of 1770 crowns.

According to the head of the ANO parliamentary group, Alena Schillerova, 71 ANO MPs signed the proposal and were professionally supported by constitutional lawyer Jan Kudrna. President Petr Pavel also admitted doubts about the amendment’s constitutional conformity. Although he signed it, he said he would turn to the Constitutional Court himself if no one else did.

If the court finds the amendment unconstitutional, it could be struck down, and the June pension indexing would revert to its previous formula. However, if the court upholds the amendment, pensioners will receive a lower increase than they would have otherwise, which could affect their financial security.

The government has stated that the change is necessary to reduce the budget deficit while ensuring that pensions remain affordable. The government argues that it must balance its obligations to current pensioners with its responsibility to future generations. However, ANO believes that the government should find other ways to balance the budget that do not affect pensioners’ rights.

The Constitutional Court will now consider the ANO proposal and other challenges to the government’s decision. It is unclear how long the process will take, but it is likely that pensioners will receive a lower increase in the meantime.

Article by Prague Forum