The Czech Social Security Administration has announced that starting in September, people who receive their pensions in cash via post will have to pay an extra fee of six crowns per installment. The increase will bring the fee for each pension installment from 29 crowns to 35 crowns. The fee will not apply to those who started receiving pensions before 2010, as the Social Security Administration pays the fee on their behalf. Approximately 674,100 pensions were sent out through the post last year, with half of those individuals receiving them in person at post office branches.

Representatives for seniors have criticized the increase, arguing that it will disproportionately affect those on a fixed income. Many pensioners still rely on receiving their pensions in cash at post offices, as they do not have access to the internet or bank accounts. Lenka Desatová, the chair of the Council of Seniors, stated that the increase was “not socially sensitive” and would not improve the profitability of the postal service. Furthermore, the increased fee is likely to be an attempt to pressure people to use bank accounts, particularly given the planned closures of some post offices.

The spokesperson for the Social Security Administration advised pensioners to have their pensions paid into their bank accounts or those of their spouses. However, Ms. Desatová argued that this advice ignored the reality that many people do not have access to bank accounts, either because they live in remote areas where bank branches are scarce or because they have had problems opening a report in the past. She called on the Social Security Administration to reconsider the increase and come up with a more socially responsible solution.

The increase in the fee for receiving pensions in cash via post is a response to the unstable pricing structure of the Czech Post, according to the Social Security Administration spokesperson, Jitka Drmolová. The extra charge will be deducted from the pension amount paid to the individual. Three-quarters of pensioners in the Czech Republic receive their pensions through bank transfers, but a quarter still rely on receiving their pensions in cash at post offices.

Article by Prague Forum