Investor Presentaiton

. Need to simplify pension calculation rules Complexity arises from the rules to compute the reference wage: sharply non-linear weights granted to lifetime wages are an exception internationally Figure 1.10. Reference wage and effective accrual by average wage over the career Reference A.Reference wage, multiple of the average wage Effective accrual B.Effective yearly accrual wage 2.0 1.6% 1.8 1.4% 1.6 1.2% 1.4 1.0% 1.2 1.0 0.8% 0.8 0.6% 0.6 0.4% 0.4 0.2% 0.2 0.0 L 0.0% T 0.0 00 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.0 0.5 1.0 1.5 2.0 Multiples of the average wage 2.5 25 L L 3.0 3.5 4.0 4.5 5.0 Multiples of the average wage Source: Czech Ministry of Labour and Social Affairs and OECD calculations. 9

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