PARLIAMENTARY BENCHES DISCUSS PENSION INSURANCE BILL

( Editorial: --> 6406 ) ZAGREB, July 8 (Hina) - The text of the pension insurance bill in the third reading is a step back from what was submitted in the second reading, a majority of Croatian Opposition MPs said during a discussion in the Croatian National Parliament on Wednesday. They announced that they would vote against the bill. Anto Djapic of the Croatian Party of Rights (HSP) said he would not support the bill because he believed that the pension reform should be preceded by a revision of pensions, especially those obtained through various "privileges" in the former system. Djuro Njavro of the Croatian Democratic Union (HDZ) supported the bills adding that pension allowances have been increasing in line with the economic growth since 1993, when they amounted on the average to DM151, in 1995 to DM225 and in the first six months of 1998 DM337. HDZ takes into consideration the interests of the state and society, Njavro said adding that some parties were trying to use the issue of retirees for their own political goals. Hrvoje Kraljevic of the Croatian Social-Liberal Party (HSLS) said his party would vote against the bill. The section of the bill which refers to the transfer of funds to the pension fund does not give data as to the exact amount of those funds, Kraljevic objected. The lowest and basic pensions were set arbitrarily and the bill does not treat women and men equally, Kraljevic said. The bill in the third reading has in fact given up the request for women to meet the same requirements as men for full retirement. However, the full pension allowance for men will be 14.29% higher than for women, provided that a woman has the same years of service, Kraljevic said. The Croatian Peasants' Party (HSS) opposes reforms until system problems are solved, Petar Zitnik said. The pension reform should not have been started in the present difficult economic situation, he added. The Social-Democratic Party (SDP) proposes the right to old-age pension for men aged 62 and the same for women aged 57 and with 15 years of service, said Marin Jurjevic. SDP also proposes that the bill take effect on July 1, 2000, instead of January 1, 1999. Opposition representatives agreed that retirees should be given what they had been deprived of and that the exact amount of the debt be established and pensions paid in line with law. The MPs presented numerous objections to the bill on the transfer of funds to the pension fund. Damir Kajin of the Istrian Democratic Assembly (IDS) said that pension funds were used by tycoons as self-service shops so that they could establish their glass empires which then laid off workers. The only just solution is to raise pensions by 82 per cent, Kajin said adding he believed the state had money for this. Should there be no money for that purpose, the economy can be additionally burdened and wrongs done to the retirees rectified, he added. The lower house continued the session with individual discussions. (hina) rml 081519 MET jul 98