NATIONAL PENSIONS WOULD BE FINANCED FROM CONTRIBUTIONS, TAXES

ZAGREB, Nov 29 (Hina) - Croatian Labour and Social Welfare Minister Davorko Vidovic said on Thursday night that the government was preparing a project of introducing national pensions which would, along with contributions, be financed by citizens' taxes. "The current unfavourable relations between pensioners and the employed does not secure adequate pensions, so national pensions would be an expression of social solidarity towards the poorest pensioners," Vidovic told reporters after talks with representatives of the Alliance of Independent Unions of Croatia focusing on the implementation of an Agreement on a Fair Croatia. According to him, the national pensions would be lower than the lowest pensions achieved through compensations, and would be intended for retired farmers and those workers for whom employers are not paying pension insurance compensations. The lowest basis for contributions and the realisation of rights from pension insurance is 1,900 kuna. "The second pension insurance pillar is based on the principle 'the amount of contributions is the amount of pensions', but some will not be receiving pensions because employers are not paying the contributions," Vidovic said. He announced that a ministry working group would by the middle of next year draw up a detailed analysis of the project. (hina) lml