The grade C+ corresponds to the assessment that the system has good settings/regulations, but also has major risks and shortcomings that need to be resolved. Without improvement, its effectiveness and long-term sustainability may be questioned.
The overall assessment consisted of an assessment of three criteria - adequacy, sustainability and integrity.
In terms of adequacy and sustainability, Hanfa reported, Croatia is somewhat weaker than in the integrity criterion, which assesses the integrity and reliability of the system based on regulation, management, protection, transparency and operating costs.
Along with Poland, Croatia is the only Central European country considered in this analysis, and according to its ranking, it is on par with some other Western European countries such as France and Spain, and ahead of Italy, Austria and Poland.
"Council members concluded that according to Mercer's scale, the Croatian pension system received a positive international evaluation"; Hanfa announced.
The Mercer CFA Institute Global Pension Index benchmarks 47 retirement income systems around the world, highlighting challenges and opportunities within each.
"Botswana, Croatia and Kazakhstan were added to the mix this year. We also used updated data from the OECD and added some new questions to the integrity sub-index. The Index is made up of three sub-indices, including adequacy, sustainability and integrity, to measure each retirement income system against more than 50 indicators," Mercer says on its website.