ZAGREB, Nov 27 (Hina) - The Pension Fund will submit a +recommendation to the Labour and Social Welfare Ministry to +increase the rate of contributions for pension allowances from the +current 21.5 to 25 per cent. This would be equal
to the amount it was +a year ago, Pension Fund Director Damir Zoric told journalists at a +press conference on Friday.+ An increase in the contribution rate is essential, Zoric said, in +order to ensure normal operations for the Fund or even to maintain +the current pension level or to enable any increase in pension +allowances.+ An increase in the contribution rate of 3.5 per cent would ensure +about $US333 million which would be the amount required to pay +current pensioners for a period of 1 and a half months. + This would represent a further 3.73 burden on employers, and 2.63 +per cent for employees, he said. It is estimated however, that this +burden would be
ZAGREB, Nov 27 (Hina) - The Pension Fund will submit a
recommendation to the Labour and Social Welfare Ministry to
increase the rate of contributions for pension allowances from the
current 21.5 to 25 per cent. This would be equal to the amount it was
a year ago, Pension Fund Director Damir Zoric told journalists at a
press conference on Friday.
An increase in the contribution rate is essential, Zoric said, in
order to ensure normal operations for the Fund or even to maintain
the current pension level or to enable any increase in pension
allowances.
An increase in the contribution rate of 3.5 per cent would ensure
about $US333 million which would be the amount required to pay
current pensioners for a period of 1 and a half months.
This would represent a further 3.73 burden on employers, and 2.63
per cent for employees, he said. It is estimated however, that this
burden would be equally divided between the two sectors.
The extra funds would settle the Fund's regular expenditure as
reflected in the 1999 state budget. It is up to the Fund to ensure
some $US3 billion, said Zoric.
Asked about payment of pension supplements for December, Zoric said
that pensioners will receive their supplements in two rates. As far
as Christmas bonuses for pensioners are concerned, Zoric stated he
supported the idea if additional funds could be ensured.
Zoric concluded today's press conference saying that he had
presented the police with a significant number of cases of
irregularity and abuse of the pensions system such as false
statements of employment seniority.
These irregularities have a "long tradition", and it is time to put
an end to them, he said.
(hina) sp