PENSION REFORM AND HUMAN CAPITAL

Non-intelligibility and unconstitutionality are the basic problems of the Czech public pensions; both may be eliminated with a small pension reform based on a change of several parameters and/or on split of public pensions into two pillars. Marketing and lobbying dominate the Czech pension policy and thus it is not sure that this year the government agrees on a small pension reform at least. A large pension reform should also consider the contemporary concepts of old-age, disability, and survivor pensions as well as the associated human capital investments. It is not only about the lengthening of working activity of elderlies but also about the whole concepts of family and education policies. These social policies generate not only public and private expenses but also economic development, with impact on pension policy and its potentials. The approval of a coherent modern social policy concept/model is the best solution. The aim of the paper is a presentation of such a policy for Czech conditions, including the link to the tax policy. Such a large pension reform also defines the space for the occupational and personal pensions and their fiscal regimes which have been exorbitant and unconstitutional in Czechia.