CRO GOVT ADOPTS BILL ON REFUND OF PENSION FUND RESOURCES

( Editorial: --> 4412 ) ZAGREB, June 29 (Hina) - The Croatian government on Monday's session adopted a Bill on the refund of Pension Fund resources and the urgent adjustment of pensions. The Croatian National Parliament will discuss the Bill at an extraordinary session after July 7. The Bill stipulates that US$1.2 billion is to be set aside from the government budget to improve pensioners' standard of living. The Bill also establishes a new way of adjusting pensions to living expenses and salaries as of July 1. The new law would be effective until a new law on pension plan is adopted. Explaining the Bill, Prime Minister Zlatko Matesa said it was based on principles of a social state and social justice, as well as that the government would not pay back debts to pensioners under the law. Retirees' associations said it was a "new vague law" which should "overcome the situation" in which the government is looking for a way to evade realising a Constitutional Court decision on the adjustment of pensions and pay back of debt to pensioners. (hina) lml as 291805 MET jun 98