ZAGREB, Aug 19 (Hina) - The reform of the system of privileged pensions, which is aimed at adjusting those pensions with the regular system of pension allowances and the country's economic potential, should be completed by the end of
this year, an assistant to Croatia's Labour and Welfare Minister said last Friday. "Discussions about additional, 10% linear taxation of MPs' pensions and other privileged pensions do not mean that we have given up our plan to organise the system of privileged pensions in a more just way," said Bozo Zaja. "We are planning to do this by the end of this year," he added. Croatian politicians support the reform of the pensions of parliamentary deputies both because of the fact that the average pension in the regular pension system amounts to 1,650 kuna (about USD 203) as well as because of considerable differences within the system of privileged pensions itself. However, it seems th
ZAGREB, Aug 19 (Hina) - The reform of the system of privileged
pensions, which is aimed at adjusting those pensions with the
regular system of pension allowances and the country's economic
potential, should be completed by the end of this year, an assistant
to Croatia's Labour and Welfare Minister said last Friday.
"Discussions about additional, 10% linear taxation of MPs'
pensions and other privileged pensions do not mean that we have
given up our plan to organise the system of privileged pensions in a
more just way," said Bozo Zaja. "We are planning to do this by the
end of this year," he added.
Croatian politicians support the reform of the pensions of
parliamentary deputies both because of the fact that the average
pension in the regular pension system amounts to 1,650 kuna (about
USD 203) as well as because of considerable differences within the
system of privileged pensions itself.
However, it seems their determination to solve this issue is
demonstrated only with words and they frequently claim that changes
have not been made yet because their time in parliament is too
precious to be spent on issues that concern them.
"The privileged pension is not an acquired right but exclusively a
matter of political will and it only takes political will to change
that system, so that high salaries of MPs and their pensions do not
become the main reason why people become engaged in politics," said
a deputy who spoke on condition of anonymity.
However, the actual climate among deputies, regardless which party
they belong to, is such that changes are probably not likely to
happen, the same source said.
Part of deputies believe that the reform of privileged pensions
should follow the example of some European countries where state
officials receive a bonus on their pensions. The amount of that
bonus would depend on the economic situation in the country.
According to the plan of the Labour and Welfare Ministry,
privileged pensions should not only be reduced and adjusted to the
country's economic potential but also integrated in the regular
pension system which refers to all citizens.
The reform should include the pensions of parliamentary deputies,
which amount to some 7,700 kuna (about USD 946), but also the
pensions of WWII partisans, Home Guard soldiers and members of the
former Yugoslav People's Army, which on the average do not exceed
2,000 kuna (USD 246). The reform would also refer to the pensions of
employees with the ministries of interior and justice (average
pension 2,500 kuna or USD 307), former political prisoners (2,800
kuna or USD 343), former members of the Croatian Army's active part
(3,600 kuna or USD 442) and Croatian soldiers, with an average
pension of 5,000 kuna (USD 614).
The major change would be made to the pensions of MPs, which
impoverished Croatian citizens consider immoral. The average
pension of a former parliamentary deputy is five times the average
pension of 1,650 kuna and the highest such pension is ten times the
average pension. Nevertheless, there are differences within the
system of MPs' pensions itself, which are the result of several
changes of laws on state officials' salaries and pensions and the
rights of parliamentary deputies.
According to the Croatian Pension Insurance Institute, whose
retirement regulations apply to government members and
Constitutional Court judges as well, the pensions of parliamentary
deputies (at the end of 2000, there were 184 such pensions) range
between 4,200 to 15,000 kuna (USD 516 to 1,843).
At the end of its mandate in 1999, the Croatian Democratic Union
(HDZ) made changes to the Law on the Rights of Parliamentary
Deputies and under these changes the base for the calculation of
pensions was no longer the salaries a deputy received in the last
year of his mandate but his salary at the time he requested
retirement. The highest pension in line with these changes,
amounting to 15,011.63 kuna, was given to HDZ's Marko Maricevic, a
deputy to MP Marinko Liovic in the second-last composition of the
House of Counties, which was dissolved this year in line with
constitutional changes.
To acquire the pension mere mortals can only dream about, Maricevic
needed, along with the age of 55 and 20 years of service, his rather
imperceptible presence at parliamentary sessions between 18 June
1997 and 19 April 1999. Namely, along with other privileged
conditions, a deputy must have 18 months of service to be able to
seek a MP pension.
After it came to power last year, the ruling six-party coalition cut
state officials' salaries by about 30%. Changes were made to the Law
on the Rights of Parliamentary Deputies and MPs who were retired at
that time now receive pensions amounting to between 8,000 (USD 983)
and 12,000 kuna (USD 1,474).
Among parliamentary deputies, a rather high pension is received by
Zarko Domljan - 13,749 kuna (USD 1,689), thanks to his having been
both parliament's speaker and deputy speaker.
Pensions exceeding 13,000 kuna (USD 1,597) are received by former
Supreme Court judges Jadranko Crnic, Nikola Filipovic and Vojislav
Kucekovic and a former vice-premier Milan Ramljak.
Constitutional Court judge Ante Jelavic and a former MP and
Croatian Radio-Television director, Antun Vrdoljak, receive
pensions amounting to more than 12,000 kuna.
Pensions amounting to 11,000 kuna (USD 1,351) are received mostly
by the chairmen and deputy chairmen of parliamentary committees
from the previous parliament composition, while deputies from the
1995-1999 parliamentary mandate receive pensions ranging from
8,000 to 10,000 kuna.
Thanks to the legal changes, some deputies from the first
parliamentary mandate have managed to "put in the bag" pensions
amounting to some 10,000 kuna (USD 1,228). For example, Social
Democratic Party's (SDP) Delfina Arapovic has a pension of 4,800
kuna while her party colleague Marica Pervan has 11,000 kuna, the
difference being the time the two deputies were retired.
The pensions of deputies-former political prisoners differ as
well. Marko Veselica and Djuro Perica receive some 10,000 kuna,
just like Stjepan Mesic, whose pension was frozen last year when he
was elected Croatian President. Hrvoje Sosic and Sime Djodan
receive each 13,000 kuna while Davor Aras has 15,138.83 kuna.
(hina) rml