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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110015-7

persons. At the same time, leaders were cautioned to regain the support of the rank and file; to this end some were sent to Moscow for training in Soviet trade union methods. In addition, many specially selected shop stewards were given training. In late 1973, the government was stepping up activity at the lowest union echelons where the URO could exert greatest influence, while gradually returning control of the unions to the national level.

5. Social security and public welfare

All social security and public welfare activities are administered by the state. The social security system, referred to as "national insurance," is built on an extensive prewar base and covers over 97% of the population. Prior to 1968, social security benefits were used to offer incentives as well as to provide security to workers who conformed to the patterns imposed by the government. The political bias of the system was reflected in higher benefits offered to "exemplary" workers and the reduction or withholding of benefits from "unreliable elements." Legislation passed in 1958, and reaffirmed in 1966, provided for the lowering or suspension of allowances to one-time entrepreneurs, representatives of the former political and social order, and other persons considered anti-Communist. Such discriminatory practices were largely eliminated during 1968, and by 1969 a nationwide, computer-based system of administering wage and social security programs had been initiated on a uniform basis.

National insurance is of two types: health insurance, administered through the Central Council of Trade Unions, and pension insurance, managed by the National Social Security Office. The Central Council of Trade Unions and the regional trade union councils also administer family allowances, supervise the use of health resorts, and participate in the distribution of pension insurance payments on the local level. Coverage under the system applies automatically to all persons gainfully employed in the "socialized" economy and their dependents.

Receipts and expenditures for all social insurance are included in the Czech and Slovak state budgets and two national committee budgets. For health insurance, the state contributes 85-90% of the cost and the employer the remainder; for pensions, the state assumes full responsibility. Total outlays for social insurance benefits have steadily increased, with expenditures in 1971 reaching roughly one-fifth of the total state and national committee budgets.

Health insurance coverage includes hospitalization, drugs, doctors' services, maternity and funeral benefits, and in some instances special cash allowances. Sick-pay is granted to a worker temporarily unable to work due to sickness or injury. Depending on the length of employment, benefits range from 50-70% of net wages for the first 3 days and from 60-90% thereafter, for up to 2 years if recovery is expected. A system of charging nominal fees for medicine was introduced in 1964 as part of an effort to increase revenues. In 1966 free health care was extended for the first time to private farmers, thus making the entire population eligible for this service. Health expenditures in 1971 amounted to over 15½ billion korunas, or roughly 7% of total national income.

Pension insurance provides money for the aged and retired, for the disabled, and for widows and orphans. Pension benefits are graded by category of employment and number of years of employment. The system has been revised considerably, with eight modifications to the law having been enacted since 1954. In an effort to persuade older workers to postpone retirement, the period of employment necessary for claiming a full retirement pension has been extended from 20 to 25 years. Those who are not qualified for a pension by 25 years of employment must work until age 65 to receive a full annuity. The retirement wage for women, formerly 55, now is based on a sliding scale according to the number of children. The retirement age for childless women is set at 57, and that for women with children is 53-57 depending upon the number of offspring; men may retire at 60 to at 55-58 if engaged in unhealthy or onerous work. Workers permanently disabled are eligible immediately for a pension equivalent to 60% of their earnings, plus a 1% increase for each year of employment between 26-35 years. Persons with partial disabilities receive a reduced pension.

A change in the pension law, in 1970, increased the minimum monthly pension to 550 korunas for single persons and 850 korunas for married couples, nearly triple the average payments in 1948. To be eligible, however, the pensioner must seek additional employment, subject to his physical and mental capabilities and local working conditions. The additional annual expenditure for pensions is expected to exceed 1.1 billion korunas. To help being pension benefits in Slovakia up to the level of the Czech Lands, the government earmarked 40% of the additional funds for Slovakia. By 1971, the average worker's old age pension in Slovakia, 909 korunas per month, was slightly higher than the average of 885 korunas per month in the Czech Lands. Approximately one-fourth of the 3,400,000 pensioners in 1971 lived in Slovakia.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110015-7