ZAGREB, May 4 (Hina) - The Croatian parliament's House of Counties on Tuesday endorsed two pension reform bills. The pension reform is aimed at establishing a pension system which will consist of three parts: obligatory contributions
from wages to the pension fund according to the principle of solidariry among generations; obligatory saving by each employee; and voluntary pension saving. One of the bills refers to obligatory and voluntary pension funds, and is in second reading, while the other, on pension insurance companies and the payment of pensions based on individual capitalised saving, is in first reading. The obligatory pension insurance refers to all employees under 40 years of age, while employees aged between 40 and 50 will be able to choose whether they will enter the new pension system or not. The current insurance rate of 21.5 percent would not change, but would be divided into two obligato
ZAGREB, May 4 (Hina) - The Croatian parliament's House of Counties
on Tuesday endorsed two pension reform bills.
The pension reform is aimed at establishing a pension system which
will consist of three parts: obligatory contributions from wages to
the pension fund according to the principle of solidariry among
generations; obligatory saving by each employee; and voluntary
pension saving.
One of the bills refers to obligatory and voluntary pension funds,
and is in second reading, while the other, on pension insurance
companies and the payment of pensions based on individual
capitalised saving, is in first reading.
The obligatory pension insurance refers to all employees under 40
years of age, while employees aged between 40 and 50 will be able to
choose whether they will enter the new pension system or not.
The current insurance rate of 21.5 percent would not change, but
would be divided into two obligatory funds; five percent of the
gross salary would go into one of the two obligatory funds, i.e. the
insured party's personal account in only one of the authorised
pension funds.
According to Labour and Social Welfare Minister Joso Skara, the
remaining 16.5 percent of gross earnings would be paid to the
Croatian Pension Insurance Bureau for pension insurance in the
generation solidarity system.
The new pension system would come into effect on January 1, 2000,
and the new pension law would also stipulate how obligatory pension
funds, with a minimum basic capital of US$5.7 million, and
voluntary ones, with a minimum basic capital of US$2.2 million,
should be established and operate.
The Upper House also endorsed proposed changes to a law on the state
administration system, which would enable ministries to have a
state secretary, under a special government decision. The
secretary would be appointed by the President of the Republic at the
Premier's proposal.
The green light was also given to bills on the ecological production
of agricultural products, and changes to the law on poisons.
Also supported was a packet of laws aimed at the establishment of a
Croatian industry property system, which is in first reading.
(hina) ha