Czech MP, Benjamin Činčila, has put forward amendments to the proposed third pillar pension reforms, including the introduction of an auto-enrolment (AE) system.

In the parliamentary discussions on the Supplementary Pension Savings Act, the first vice-chair of KDU-ČSL highlighted support from opposition parties, the Chamber of Commerce, and the Confederation of Employers' and Entrepreneurs' Associations for AE.

Under the proposed policy, employees would be automatically enrolled into a pension scheme, but would be able to opt out if they did not want to contribute.

Činčila argued that AE should be included as an amendment to the Supplementary Pension Savings Act.

“Why is this so important? Because people put off saving,” he continued.

“They start a pension, for example, next month and then they turn 40, and the automatic inclusion doesn't force anyone, it just changes the default setting.

“That means those who don't want it, refuse. Those who don't do anything, in fact, have their savings automatically added to them.”

Činčila pointed to the UK as an example of the successful introduction of AE, noting that the percentage of employees saving into a pension had increased from 45 per cent to 85 per cent due to the policy.

“We propose automatic inclusion with the right to refuse, and we propose it only where the employer is already contributing to the pension and the employee doesn't have one yet,” he added.

“The employee gets the information in advance and can simply refuse within 60 days.

“It's not an increased administration, because of course there are risks, none of us want to create another 1,000 new forms that employers would have to monitor, but it's a simple and understandable thing, automatic involvement of the employer. And they unanimously want it, you have the letter and you probably heard it from them.”

It was proposed that AE should be introduced to start in January 2029 to ensure employers had time to prepare for the change.

Discussions on the Supplementary Pension Savings Act are ongoing.

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