Under the bill, aligned with European Union legislation, between 2014 and 2031 the same conditions for old-age and early pension would apply as stipulated by the current law.
Men would remain eligible for old-age pension at 65 until 2030, while the age would be increased by three months per year from January 1, 2031 through 2037.
As of January 1, 2038, the right to old-age pension would be acquired at 67 years of age and 15 years of service for retirement, while the right to early retirement would be acquired at 62 years of age and 35 years of service for retirement.
According to government data, there will be 370,000 job vacancies for which there will be no labour in Croatia in 2030, said Mrsic.
Under the bill, insurees at 60 years of age and 41 years of service will be able to retire without penalisation.
The bill introduces the institute of full old-age pension - 65 years of age and 35 years of service for retirement, with transitional provisions for women - and changes penalties for early retirement.
The bill divides the system into two parts - workers' pensions and pensions determined under special laws because the former are financed from contributions and the latter from the budget.
The bill also changes the models of pension indexation. Mrsic said the aim was to keep average workers' pensions at 40 per cent of the average salary, while the indexation of pensions determined under special laws would depend on real GDP growth and the state budget deficit.
The bill is expected to cut pension expenditures by HRK 85 million in 2014 and by HRK 150 million in 2015.
(EUR 1 = HRK 7.6)