The General Health Insurance Company (VZP) in the Czech Republic has reached an agreement with the Czech Social Security Administration (ČSSZ) and the Ministry of Labor to address the issue of pension processing delays. As a result of this collaboration, VZP will receive a list of individuals awaiting pension processing from ČSSZ, eliminating the need for the insurance company to request health insurance contributions from them.

Currently, the state covers health insurance for retirees in the Czech Republic. However, due to the overwhelming number of pension applications, ČSSZ has been unable to process them within the legally mandated three-month period. Consequently, many individuals who have already stopped working and ceased making health insurance contributions have not had their pensions officially confirmed. This has led insurance companies to continue requesting contributions from them through an automated process.

To resolve this issue, individuals had to provide proof to their insurance company that their pension was being processed. Once the proof was provided, the insurance company would no longer request contributions. In cases where individuals paid the requested amount, they would be reimbursed by the insurance company once their pension was processed.

Implementing this change poses technical complexities, and VZP has requested understanding from the affected individuals during the transition period. Those who receive requests for proof of health insurance payments or payment of minimum contributions are encouraged to contact VZP’s branch to have their situations addressed on an individual basis.

If an individual’s pension application is ultimately denied by ČSSZ, the insurance company will engage in discussions with them regarding the next steps. However, it is expected that this situation will only apply to a few cases.

The influx of pension applicants, particularly those seeking early retirement, has led to a significant backlog at ČSSZ. The administration has also faced additional paperwork for a special “educational” pension that has been granted since January. As a result, the processing time for pensions currently exceeds the legally mandated three-month limit, with an average processing time of 99 days.

This week alone, ČSSZ recorded 18,000 requests that exceeded the legal deadline, with 14,000 of them being for early retirement. František Boháček, the central director of ČSSZ, assured the social committee members that the administration is working to resolve the situation by the end of June. They aim to process pension applications within the legal timeframes once the backlog is addressed.

The collaboration between VZP, ČSSZ, and the Ministry of Labor demonstrates a proactive approach to address the pension processing delays and mitigate the financial burden on individuals awaiting their pensions. By streamlining the communication between the social security administration and insurance companies, this initiative aims to provide timely and efficient support to retirees in the Czech Republic.

Article by Prague Forum