GOVT FORMULATES BILL ON PENSION FUNDS COMPENSATION

( Editorial: --> 2146 ) ZAGREB, June 18 (Hina) - The Croatian Government Thursday formulated a bill on compensation for pension funds and pension adjustment after June 30, 1998, and forwarded it into urgent parliamentary procedure. According to the bill, the Government should over the next four years earmark US$1.15 billion for improving the financial situation of pensioners. The bill also determines a new way of adjusting pensions with increases in the cost of living and in wages. Former provisions on the adjustment of pensions have been recalled on the basis of last month's decision of the Constitutional Court of Croatia. The current act is therefore temporary until a new pension act is passed. With the funds envisaged for improving the pensioners' position the government is not repaying the debt to pensioners, Vice Premier Ljerka Mintas-Hodak said. Money which had not been paid into the pension fund could not have been paid out, she explained. A final bill on pension insurance has been forwarded into third parliamentary reading. Finance Minister Borislav Skegro said transition costs in the first year of implementation will reach 1.8 per cent of the planned gross national product. (hina) ha/bag jn 181455 MET jun 98