Ekonomicko-politicky proveditelná reforma penzijního systému v ČR (2020 - 2085)

The main objective of the research is to propose a system which will increase the retirement pension of individuals with above-average income to the relative pension level of average- earning individuals (gross replacement rate – GRR), while not reducing the retirement pension of low-income individuals and not increasing the public deficit in comparison with the current system. This would also be done with not increasing the salary income taxes for low- or average-income households, thus decreasing both the intragenerational and intergenerational solidarity of the entire multi-pillar system. Based on studies of the funded systems (FF DC) and their impacts mostly in Chile, Hungary and Poland, I do define 7 conditions and 17 parameters correlated to them needed to be set up in FF DC model in the Czech Republic, in order to fulfil the goal of the research. It concerns mostly no minimal return’s regulation, set-up of the minimum mandatory contribution only for the individuals with above-average income without an opt-out from the current (PAYG) system, higher involvement of the pension funds in the property management, routing the contributions to the accounts of both husbands/partners with possibility not to contribute and instead to satisfy personal household needs, and mainly opt-in the selected strategy for higher risk portfolio during the first investment decades and gradually selling it while ageing. The research confirmed the hypothesis, that the implementation of mandatory funded financing for average- and higher-income households will lead to an increase of the equivalence of the entire system, while keeping the same return levels for low-income individuals. The implementation of the added FF DC system requires only setting up a 10 % contribution to FF DC only for individuals with above-average wages, for which the contribution will be paid only from the wage part exceeding the average wage. Thus will be balanced GRR of the individuals with above-average wages at least to the level of those employed at the average wage. This would lead to a significant increase of the equivalence of the entire pension system of the Czech Republic for average and higher-income individuals, by keeping in the meantime the built-in solidarity for those with low income whose pensions wouldn’t be decreased. The main contribution of the research is to define the exact pre-conditions and the parameters correlated to them in order to enable the implementation of the FF DC system in the Czech Republic.