He announced these changes to take place after the next elections.
"The current pensions of MPs who go into retirement are not what Croatian citizens expect, as they are not deserved," Milanovic told a news conference in the northern town of Cakovec on Wednesday.
The SDP is going to propose regular retirement of members of parliament when they qualify for it, while the time they have served in parliament or as state office-holders will be remunerated through an additional system, this opposition party reported today.
Milanovic was quoted in the party's statement as describing Croatia as a too much centralised country and that the SDP is planning to decentralise it by enabling local self-governments to double their revenues.
Asked to express his opinion on possible coalitions for the forthcoming parliamentary elections, Milanovic said that SDP had decided to run in the election on its own.
This does not mean that we will reject anybody, but this is a typical mode of behaviour in a developed European democracies, he added.
"After the elections we shall sit at the table with potential partners to consider the establishment of a new government," said the SDP chief.