LABOUR MINISTRY PRESENTS BILL INCREASING PENSIONS

ZAGREB, June 23 (Hina) - The Ministry of Labour and Social Welfare on Friday in Zagreb presented a bill on increasing pensions which is aimed at eliminating differences between pensions realised in different periods of time. According to the bill, as of January 1 2001, pensions realised by 1994 would increase by 20 percent, those realised by 1995 would increase by 18 percent, while those realised by 1996 and 1997 would rise by 16 and 14 percent respectively. Labour and Social Welfare Minister Davorko Vidovic said the bill was the most one could offer for the time being with the aim of implementing a decision by the Constitutional Court of May 1998 annulling regulations which legalised the previously illegal reduction of pensions. "We have decided to make up for at least a part of damage in line with the most of our financial potential," Vidovic said. He stressed the bill would not solve the problem of all debts, which amounted to 200 billion kuna. The announced increases, said Vidovic's deputy Bozo Zaja, would increase the share of the average pension in the average salary from 37 to 42 percent. The cost of implementing the bill over the next year would be some 2.14 billion kuna, and 22.7 billion kuna over a period of ten years. Implementation of the bill would be financed from the budget. The bill should be discussed by the Government next week and sent into the first parliamentary reading in July. The Labour Ministry wants the implementation of the law to begin on January 1 2001. (hina) jn rml