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Pensioners' association backs Lovrinovic's idea about 2nd pillar

ZAGREB, Jan 20 (Hina) - An umbrella association of pensioners that goes by the name "Matica Umirovljenika Hrvatske" on Wednesday stated that it supported the idea put forward by a parliamentary deputy of the Bridge party, Ivan Lovrinovic, about the suspension or cessation of payment of contributions into the second pension insurance pillar and the redirection of amassed funds into the first pillar of inter-generational solidarity.
The association, which says that it has 279,000 members, explained that the second pillar with the compulsory contributions was run by "private bank funds whose only interest is profit and earnings without social sensitivity".

The association insists that over five billion kuna is annually accumulated into private bank funds, while at the same time a lack of money for the payment of pensions "is being offset by the state budget".

The association claims that Lovrinovic has publicly said what a majority of 1.2 million pension recipients in Croatia think.

The association also recalls that currently, the mean monthly pension is HRK 2,239,  accounting for a mere 39% of the average monthly salary.

The association said in a press release that it would support all those who would ensure that pensions would be fairly indexed to salary growth, living costs and increase in GDP. 

(EUR 1 = HRK 7.6)

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