MATESA PREDICTS BETTER POSITION OF RETIREES AFTER PENSION REFORM

PENSION REFORM $ ZAGREB, Sept 10 (Hina) - Croatian Government officials have advised people who were nearing the retirement age not to hasten to get the status of retirees because of the beginning of a pension reform in the country, as such a rapid increase in the number of retirees would affect the pension fund and make problems for regular payment of pensions. Premier Zlatko Matesa and Labour Minister Joso Skara held news conference on Wednesday on a draft pension bill that would be discussed by the Parliament next week. This law should come into effect on July 1, 1998. However, a five- year transitional period has been envisaged and after that the law would be completely applied. There was no need that people who had two or three years until the retirement to hasten to retire, due to the fact that the age limit for the pension was to rise, Skara told the conference. It would be disaster if about 20 to 30 thousand new requests for retirement were submitted all of a sudden to the pension fund, as this would aggravate the financial situation and the regular pension payment, the minister added. According to Matesa, the pension reform is a precondition for the further development of Croatia and the Government has begun the reform in line with suggestions of the international labour organisation. The reform's first stage, regulated by a bill on obligatory old-age pension insurance, envisages the rise in the age limit for the retirement, a new way of the calculation of pensions, the Government's strong control over the funds and effective collection of contributions. The international labour organisation recommended that only after that the second stage of the reform should begin, Matesa and Skegro said. Matesa predicted that a new pension system would ensure a better position of pensioners. (hina) jn mš 101613 MET sep 97