1 January 1999 by calculating their pensions on the basis of the ten best paid years of service, because this would mean a return to the previous system, Croatian Deputy Prime Minister Damir Polancec said after meeting the leader of the Croatian Pensioners' Party (HSU), Vladimir Jordan, on Thursday.
"We cannot agree to it because it would mean completely abandoning the pension reform," said Polancec, who also chairs the government's commission in charge of amending the Pension Insurance Act, which consists of representatives of the government and the pensioners.
Polancec said the commission would have problems finding additional funds, but that it was not closing the door to talks but would try to find solutions to improve the pension system.
The government has ideas on how to solve the problem of pension allowances for people retired after 1 January 1999, which have been lagging behind the pension allowances of people who were retired earlier, he added.
The government will soon present its position on 12 issues from the area of pension insurance which the HSU has brought to its attention, Polancec said.
Representatives of the government and pensioners' associations are expected to meet in about ten days to discuss results in the implementation of the post-election agreement between the ruling HDZ party and the HSU.
Polancec and Jordan expressed satisfaction with having reached agreement to continue cooperation.
Jordan added that the HSU would decide next week if it would support the 2006 budget.