CROATIAN LOWER HOUSE DISCUSSES POSITION OF PENSIONERS

ZAGREB, Feb 6 (Hina) - A bill on bringing pensions in line with salaries and costs of living is part of announced care of the Croatian Government for the position of retirees, Croatian Labor and Social Welfare Minister Joso Skara said on Thursday's session of Croatian Parliament House of Representatives. Minister Skara said it was about bring in line pensions from 1 January 1995 until 31 December 1996. The pensions in that period should be brought in line with salaries of employees in Croatia, and the differences would be paid in the 18 months at the last. As of 1 February 1997 pensions are to be compared with an increase in costs of living, and not with a rise in salaries. It would be necessary to ensure 500 million kuna to implement the bill, Skara added. He cited data on an increasing number of retirees and said that in 1990 there were 650,000 retirees and 1.9 million employees (a ratio of 1 pensioner to 3 workers) , while in 1996 there were over 870,000 pensioners and some 1.5 million employees (ratio 1 to 1.7). He portrayed the situation as unsustainable and as a burden to the Croatian economy. He added that an average pension had increased, saying that in January 1997 an average pension used to be 337 kuna (95 German marks), and in January 1997 it is 1,100 kuna (310 German Marks). Minister Skara described the bringing of pensions in line with salaries and costs of living as a temporary solution, and announced that a pension and disablement system would pass a comprehensive reform. Skara said that a framework of the new system, accepted by the Government, includes solidarity among generations, individual saving and the saving for the old age. Parliament Lower House's legislation committee, finance and state budget committee and labour, social welfare and health committee supported the bill fully. During a discussion of the labour committee, it was proposed that pensions should be further harmonised with a rise in salaries rather than on the ground of costs of living, Ms. Vera Pivcevic-Stanic informed the Lower House. (hina) mm mš 061248 MET feb 97