Government Regulation No. 587 / 2006 Coll.
Government regulation providing for more detailed arrangements for the mutual transfer of pension rights in relation to the pension system of the European Communities
Valid
Regulation
Effective from 01.01.2007
Text versions:
01.01.2007
27.12.2006
587
GOVERNMENT REGULATION
of 12 December 2006
laying down more detailed arrangements for the mutual transfer of pension rights in relation to the pension scheme of the European Communities
The Government orders pursuant to § 105a (4) of Act No. 155 / 1995 Coll., on Pension Insurance, as amended by Act No. 189 / 2006 Coll.:
Subject matter
This Regulation provides for the calculation of the financial amount established as a transferred pension right acquired in the Czech Republic into the pension scheme of the European Communities and the transfer of pension rights acquired in the pension scheme of the European Communities into the Czech pension insurance system.
Calculation of the financial amount determined as the transferred pension right acquired in the Czech Republic
(1) The financial amount determined as the transferred pension right acquired in the Czech Republic is calculated as the product of the unit value of the deferred pension and the sum of the estimated percentage of the old-age pension and the proportion of the basic old-age pension.
(2) The estimated percentage rate of the old-age pension shall be calculated in accordance with the procedure laid down in Section 34 (1) of the Pension Insurance Act, with the assurance period and calculation basis being established on the relevant date; the date of application of the application for the transfer of pension rights to the competent institution of the European Communities or the date on which, pursuant to the directly applicable regulation of the European Communities (1), the right to apply for the transfer of pension rights is established if the application was applied before that date. For the purposes of determining the personal basis, the period of participation in the pension scheme of the European Communities shall be deemed to be excluded. The estimated rate of old-age pension is rounded up to the full crown.
(3) The proportion of the basic statement of the old-age pension shall be calculated by multiplying the basic statement of the old-age pension in force on the relevant date by the proportion of the length of the insurance period obtained in the Czech pension insurance at the relevant date and the total amount of the insurance period obtained in the Czech pension insurance at the relevant date and from the relevant date to the date of reaching the retirement age of the applicant for the transfer of pension rights ("the applicant ') according to the rules applicable on the relevant date. The proportion of the base area shall be rounded up to the whole crown.
(4) The unit value of the deferred pension shall be determined by the age reached by the applicant at the relevant date in full years, the death tables in force at the applicable date and 70% of the value of the maximum technical interest rate set by the special legislaturem2) for the purposes of the insurance sector, which shall apply at the applicable date. The unit value of the deferred pension shall be calculated as the unit initial value of the pre-term deferred pension in accordance with the formula set out in the Annex, the calculation being rounded up to the full crown.
(5) The death tables of the Ministry of Labour and Social Affairs, consistent for men and women, shall be used to determine the unit value of the deferred pension, and shall be established for each period of five consecutive calendar years.
(6) The financial amount calculated in accordance with paragraphs 1 to 5 shall be increased by an amount fixed as interest on the financial amount calculated in accordance with paragraphs 1 to 5 for the period from the relevant date to the date preceding the transfer of the financial amount from the Czech Social Security Administration account to the account in the pension scheme of the European Communities. The amount of interest shall be calculated by compound interest with an annual interest rate equal to the discount rate of the Czech National Bank applicable on the relevant date. The interest shall be rounded up to the full crown.
Transfer of pension rights acquired in the pension scheme of the European Communities into Czech pension insurance
(1) The period of service or employment in the European Communities or their institutions, and, where appropriate, the period of insurance completed in the pension scheme of another Member State of the European Communities, which was included in the actuarial equivalent of the pension rights acquired in the pension scheme of the European Communities (hereinafter the "pension equivalent"), shall be considered to be the period of insurance in the Czech pension insurance for the purpose of obtaining the period of insurance required for the pension entitlement in the Czech pension insurance period and to the same extent.
(2) The period of insurance and the assessment bases used to determine the calculation basis which, pursuant to Article 2 (2), were taken into account in the calculation of the financial amount determined as the transferred pension right acquired in the Czech Republic shall be considered, within the same period of time and to the same extent, as the period of insurance and assessment bases in Czech pension insurance.
(3) The amount of the pension equivalent, which has been referred to the account of the Czech Social Security Administration, will be converted into the Czech currency by the foreign exchange market rate of the Czech National Bank valid on the date of the transfer of the pension equivalent to the account of the Czech Social Security Administration; the amount of the pension equivalent does not exceed the amount by which the pension equivalent has been increased for the period from the application for the transfer of pension rights to the date of the transfer of the pension equivalent from the account of the pension scheme of the European Communities. Where the pension equivalent also includes the transferred pension right obtained in the Czech Republic in the amount fixed in accordance with Article 2, for the purposes of determining the transfer of pension rights acquired in the pension scheme of the European Communities, the pension equivalent according to the first sentence shall be reduced by the financial amount fixed in accordance with Article 2 (1) to (5).
(4) The amount of the percentage rate of the old-age pension determined under the Pension Insurance Act shall be increased by an amount determined according to the amount of the pension equivalent adjusted under paragraph 3 and the unit value of the deferred pension but not earlier than the date of the pension age under the Pension Insurance Act. The amount thus determined shall be deemed to be the amount of the old-age pension fixed taking into account the duration of the service or employment in the European Communities or their institutions which have established participation in the pension scheme of the European Communities and the assessment bases for that period. In the absence of entitlement to an old-age pension, the percentage rate of which would be determined in accordance with the first sentence, on the basis of death, an increase of 50% in accordance with the first sentence shall be added to the percentage rate of the widow's or widower's pension and 40% in relation to the percentage rate of the orphan's pension if those pensions are due to the death of the person whose old-age pension would be determined in accordance with the first sentence.
(5) The increase in the pension percentage referred to in paragraph 4 shall be calculated as a proportion of the amount of the pension equivalent adjusted in accordance with paragraph 3 and the unit value of the deferred pension according to the formula set out in the Annex. For the calculation, the mortality tables applicable for the purposes of the transfer of pension rights to the pension scheme of the European Communities and 70% of the value of the maximum technical interest rate laid down by the special legislaturem2) shall be used for the purposes of insurance, which shall apply at the date of the application for the transfer of pension rights acquired in the pension scheme of the European Communities to the Czech pension insurance scheme. The calculation shall be rounded up to the whole crown.
(6) The length of the insurance period in the Czech pension insurance scheme referred to in paragraphs 1 and 2 and the amount of the increase in the percentage rate of pension as referred to in paragraphs 3 to 5 shall be fixed at the date of the application for the transfer of pension rights acquired in the pension scheme of the European Communities to the Czech pension insurance scheme; that date is relevant for determining the values affecting the calculation. The calculation of the insurance period and the increase in the percentage rate according to the first sentence shall be carried out at the earliest on the date of transfer of the pension equivalent to the account of the Czech Social Security Administration.
Efficacy
This Regulation shall enter into force on 1 January 2007.
Prime Minister:
Ing. Topolánek v. r.
Deputy Prime Minister and Minister for Labour and Social Affairs:
RNDr. Netime v. r.
Annex to Government Regulation No 587 / 2006 Coll.
Calculation of the unit value of deferred pension
The unit value of the deferred pension (JHOD) shall be calculated using the formula:
JHOD = 12 x ITEM = rωdk · kpv + 0,2 · ITEK = rωdk · kpv · 1-kpv,
where
is the age reached by the applicant in full years on the relevant calculation date;
r is the difference between the applicant's retirement age and the age he reached at the relevant calculation date throughout the years;
ω is the highest age given in mortality tables,
kpv is the probability that a person who has lived to the age of at + k will live to the age of at + k, and this probability will be determined according to mortality tables,
d = 11 + i is the discount factor corresponding to the technical interest rate i.
In order to determine the probabilities of cpv, the mortality tables applicable for the purposes of the transfer of pension rights to the pension scheme of the European Communities shall be used on the date applicable for the calculation.
The value of the technical interest rate i shall be used 70% of the value of the maximum technical interest rate determined by the specific legislation that is up to date on the date applicable to the calculation.
1) Council Regulation (EEC, Euratom, ECSC) No 259 / 68 of 29 February 1968 laying down the Staff Regulations of officials of the European Communities and the Conditions of employment of other servants of the Communities, as amended.
2) Decree No. 303 / 2004 Coll., implementing certain provisions of the Insurance Act, as amended.
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Regulation Information
| Citation | Government Regulation No. 587 / 2006 Coll., laying down more detailed arrangements for the mutual transfer of pension rights in relation to the pension system of the European Communities |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 27.12.2006 |
|---|---|
| Effective from | 01.01.2007 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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