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PRIME MINISTER: FIRST PHASE OF PENSION REFORM SUCCESSFUL

ZAGREB, April 15 (Hina) - Pension reform is an extensive and lengthy process with which we wish to contribute to the country's economic development and improve the social security citizens when they come of age, Croatian Prime Minister Ivica Racan said on Monday.
ZAGREB, April 15 (Hina) - Pension reform is an extensive and lengthy process with which we wish to contribute to the country's economic development and improve the social security citizens when they come of age, Croatian Prime Minister Ivica Racan said on Monday. #L# Racan said that the first phase of pension reform was successfully completed. Croatia has lagged behind in transition in many fields, but not in pension reform, Racan told a news conference. Pension reform will in the future defend on state institutions which must supervise the efficiency of the system, the private sector which must show responsibility in resource management, and insurance users who must actively concern themselves with security in their old age, he said. Vice-premier Zeljka Antunovic said the pension reform was the first successfully started and completed project of the incumbent government. The process of reform has not ended yet, since the accounting systems of the second pillar of insurance still has to be established, as well as the legislative frames of the new system improved. Labour and Social Care Davorko Vidovic said that the pension insurance absorbed more than 55 percent of all social expenses, that is, 25 billion kuna. He added that the reform would soon prove to be a great economic project. By establishing a three-part pension insurance, Croatia has made the first step towards a new concept of social policy founded on the obligation of the individual to care for their social security, but also on solidarity with those who are not able to do so, Vidovic said. (hina) lml

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