At the meeting of the Economic-Social Council (GSV), a timeline for the adoption of pension reform was presented, as there are numerous disinformation on this issue in the public, said Minister of Labor and Pension System Marko Pavić on Monday, announcing that at the beginning of April, working groups for comprehensive pension reform and recognized working experience will be established, which will work dynamically through May and June and then agree on solutions for the reform.
In these working groups, the income and expenditure side of the budget 27 and the comprehensive resolution of the issue of the 27 percent pension supplement in the first pension pillar will be discussed, with the aim of ensuring the sustainability of the pension system and increasing the adequacy of pensions in accordance with budgetary possibilities for current and future retirees, Pavić told reporters.
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Pavić: We will resolve the issue of the 27 percent supplement
After that, two thematic sessions of the GSV on pension reform will be held, so we expect the pension reform at the Government in the summer and, on September 15, at the session of the Croatian Parliament, says Pavić.
When asked about the announcements of abolishing the 27 percent supplement and introducing a new formula for calculating pensions, Pavić replied that there were also reports that everyone would receive 27 percent.
– These are absolutely disinformation for now, and the comprehensive pension reform will be discussed through social dialogue and working groups. We will resolve the issue of the 27 percent supplement, we are working on ensuring the adequacy and sustainability of the system, emphasized Pavić.
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Retirement Age Limit
Regarding the announcements about raising the retirement age limit for full old-age pension to 67 years, Pavić reminded that this is possible even now, according to the currently valid law.
He announced that he would consider the recommendations of the European Commission, calculations, analyze the first, second, and third pension pillars and step by step, in agreement with social partners, discuss and produce a comprehensive pension reform that will go through the standard procedure in Parliament in two readings.
He stated that there will be enough time for communication with citizens and partners for all solutions that are intended to be made this year.
The president of the Croatian Association of Trade Unions Miroslav Hrašćanec said that the unions want to be active participants in the preparation of the pension reform and hope that their proposals will be discussed and accepted.
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Unions Against Extension of Working Life
We would not want them to commit injustices in the pension reform again, only to correct them after 15 years, as is the case with the relationship between the first and second pension pillars and pension inequalities. The goal was for everyone to have higher pensions, not for those in the second pillar to have lower pensions after 15 years of contributions, warned Hrašćanec.
The unions do not agree with extending the working life as a way to sustain the pension system, but believe that it can be maintained with a larger number of employees.
The biggest problem is the departure of young people who fill the pension and health system, while we are left with those who consume. We must change that imbalance, and the government must find a way to keep young people in Croatia; then the pension system will be easier to sustain, Hrašćanec stated.
On behalf of the employers, Ivan Mišetić said that they generally support the pension reform, but will be able to comment on it when more details are known.
