LOWER HOUSE DISCUSSES PENSION INSURANCE BILL

( Editorial: --> 3517 ) ZAGREB, May 13 (Hina) - The Parliament's House of Representatives on Wednesday continued its work by opening a discussion on a pension insurance bill. The MPs agreed that the bill should be sent into the third reading while the legislation concerning the second and third stages of the pension reform should considered as soon as possible. Labour and Social Welfare Minister Joso Skara presented the changes made in the first draft which passed parliamentary procedure. One of the proposed changes is for the retirement age for men and women to be equal, meaning that men and women would be retired at the age of 65. The bill also envisages departure from the current system of calculating the basic pension allowance rate. According to the new system, which would be introduced gradually, as of 1999 three years of service would be added to ten years of service which had the highest wage rates. Family retirement would be equal for widows and widowers, who would have the right to family pension at the age of 50. It is proposed that pensions be indexed twice a year according to increases in the cost of living. The bill proposes new criteria for acquiring disability pensions and the revision of existing disability pensions. It also proposes checks every four years so that misuse could be reduced to the lowest possible level. Most objections to the bill regarded the prolongation of the retirement age and equal retirement age for men and women, as well as the establishment of the basic pension rate and the composition of the Pension Insurance Fund Administrative Council. Ante Tukic of the Liberal Party (LS) described the bill as a "male law," which was supported by Jadranka Kosor of the Croatian Democratic Union (HDZ). Several MPs warned about the proposal for members of the Administrative Council to be appointed by the Government. Mato Arlovic of the Social Democratic Party (SDP) said that a body which makes decisions and adopts acts cannot be responsible to no one but itself. MPs also agreed that pensions should be indexed not only to living costs but also with wage increases. Damir Kajin of the Istrian Democratic Assembly (IDS) said it was firstly necessary to carefully consider the pension reform and then to adopt laws. Ivan Gabelica of the Croatian Pure Party of Rights (HCSP) proposed that displaced people with less than 15 years of service should have the right to pension. Vlado Jukic of the Croatian Party of Rights (HSP) proposed that former JNA members be excluded from the right to pension until the completion of the succession to the former state. (hina) rm/mrb 131937 MET may 98