CROATIA BEGINS PAYING PENSIONS TO BENEFICIARIES RESIDING IN BOSNIA

ZAGREB, June 19 (Hina) - After introducing external payments with Bosnia's Republic of Srpska (RS) in May, the Croatian Pension Insurance Fund (HZMO) has begun with the regular payment of pensions to beneficiaries living in Bosnia, the HZMO said on Tuesday. Bosnia's pension funds are therefore expected to regularly pay pensions to beneficiaries living in Croatia. The Bjeljina-based RS Pension Insurance Fund should secure pensions for 7,919 beneficiaries in Croatia. In the past these pensions were paid on an irregular basis and those which were paid were in average three times smaller than those Croatia pays to beneficiaries in RS. Two federal Bosnian funds, in Sarajevo and Mostar, which should pay out pensions for 11,360 persons residing in Croatia, are also irregular in their payments. The payment of backlog pensions from Bosnia will depend on the Bosnian funds' financial situation. They will be paid out successively once funds have been secured, said Krunoslav Novak of the HZMO. Not waiting for pensions from the neighbouring state, the HZMO paid out the May pensions for 2,936 of a total 5,527 beneficiaries from RS. The rest will be paid when the Bjeljina fund submits all necessary data regarding the remaining 2,591 beneficiaries and after some beneficiaries' requests for "family pensions" have been seen to. After gaining independence ten years ago, Croatia signed social insurance agreements with Macedonia and Slovenia. The pensions the beneficiaries residing in said countries earned in Croatia were paid out on a regular basis. An agreement with Yugoslavia was signed in September 1997 but has not come into force yet. Besides, external payments with Yugoslavia have not been established. Once the agreement is ratified and external payments are introduced, there will be no hurdle to the payment of pensions to beneficiaries residing in Yugoslavia, said Novak. (hina) ha sb