The state pension scheme of the Czech Republic is based on the obligatory basic state pension scheme pursuant to Act No. 155/1995 Sb., on State Pension Scheme, as well as on pension savings pursuant to Act No. 426/2011 Sb., and since 2013 also on supplementary pension savings pursuant to Act No. 427/2011 Sb., which replaced the supplementary state pension with state contributions under Act No. 42/1994 Sb. Voluntary supplementary schemes include products of commercial insurance companies, especially their life insurance products. The employer pension schemes that are relatively common in EU Member States are not represented in the Czech Republic.
State Pension in the Czech Republic
The following pensions are provided from the basic state pension scheme:
- old-age pensions,
- disability benefits,
- widow’s and widower's benefits, and
- orphan's benefits.
The criteria to become eligible to regular old-age pension are laid down in Section 29 of the State Pension Scheme Act.
If an artist has paid state pension contributions in another EU Member State prior to staying in the Czech Republic, this period of insurance will be taken into account when considering his/her eligibility to pension. If an artist paid state pension contributions in a country outside the EU, this period of insurance will only be taken into account if the Czech Republic has an international social security agreement with such country (see International Agreements). The artist will then receive partial old-age pensions from each country based on the number of years worked in it.
Citizens with permanent residence in the Czech Republic submit applications for old-age pension to OSSZ. If you move to another country, the old-age pension, like sickness benefits, can be sent abroad.
In the case of foreigners, the pension eligibility depends on whether they have participated in the social security scheme in a country with a bilateral agreement or not. Countries with bilateral agreement comprise EU and EEA Member States and Switzerland as well as any other countries with which the Czech Republic has signed an international bilateral agreement on mutual recognition of social security (see International Agreements). The period for which the foreigner has taken part in the social security scheme in a country with the bilateral agreement is included in the total period required for becoming eligible for old-age pension. However, the amount of the old-age pension paid by the Czech Republic to foreigners will be calculated based on the time when the foreigner contributed to the social security scheme in the Czech Republic. It is, therefore, necessary to distinguish between the period of participation in the social security scheement required for determining the eligibility for the pension and for determining the eligible pension amount.
Foreigners who have complied with the required time of participation in the social security scheme in a country without a bilateral agreement (country which does not have an international social security agreement with the Czech Republic) have to comply with the required time of participation in the social security schmee in the Czech Republic, the period for which they were contributing to the scheme in a country without the bilateral agreement is not taken into account.