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PENSIONERS' PARTY AGAINST OLD MODEL OF ADJUSTMENT OF PENSIONS TO SALARIES

ZAGREB, Dec 7 (Hina) - The Croatian Party of Pensioners (HSU) does notaccept the reintroduction of a previous formula for the adjustment ofpensions as envisaged by the government's recently adoptedPre-Accession Economic Programme (PEP), but it is willing to negotiatea new model which will guarantee that the average pension would reach50 percent of the average salary by the end of 2005, HSU presidentVladimir Jordan said on Tuesday,
ZAGREB, Dec 7 (Hina) - The Croatian Party of Pensioners (HSU) does not accept the reintroduction of a previous formula for the adjustment of pensions as envisaged by the government's recently adopted Pre-Accession Economic Programme (PEP), but it is willing to negotiate a new model which will guarantee that the average pension would reach 50 percent of the average salary by the end of 2005, HSU president Vladimir Jordan said on Tuesday,

The HSU will terminate the coalition agreement with the Croatian Democratic Union if the government continues to insist on the old model of adjustment of pensions which envisaged adjusting pensions to the rise of living costs and salaries twice a year, Jordan said at a news conference in Zagreb on Tuesday, held on the occasion of the first anniversary of the conclusion of the agreement between his party and the Ivo Sanader cabinet.

Retirees' representatives will no longer tolerate being presented with an accomplished fact, which happened in the case of the PEP and some other laws, he added.

The HSU is also against the proposal that the age for retirement be raised and against equalising the retirement age for men and women, which is also envisaged by the PEP.

Nevertheless, Jordan described the first coalition year as successful.

Positive government moves include a rise in the nontaxable part of pensions and the adoption of a law on the payment of the state debt to pensioners through the establishment of a pension fund.

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