LOWER HOUSE DISCUSSES SECOND AND THIRD PENSION REFORM BILLS

ZAGREB, May 5 (Hina) - MPs of the Opposition and the ruling Croatian Democratic Union (HDZ) variously described bills necessary to implement the pension reform in Croatia. 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 solidarity 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. Warning about the difficult position of pensioners, representatives of opposition party benches held pension reform was not possible without the reform of the economy and the rehabilitation of the Pension Insurance Institute, deeming the bills as unacceptable. The Opposition said no country in the world reformed their system while economic indicators were negative, and the cost of transiting to a new pension system estimated at US$0.35 billion. The ruling HDZ representatives claimed the bills would not damage the pensioners. (hina) lml