Privileged pensions

Parliament passes law abolishing privileged pensions

25.01.2012 u 21:58

Bionic
Reading

The Croatian parliament on Wednesday passed by a majority vote, with 80 votes for and 12 abstentions, amendments to the law on entitlements and responsibilities of members of Parliament abolishing privileged pensions for MPs, Constitutional Court judges and the Chief State Auditor.

Deputies of the opposition Croatian Democratic Union (HDZ) abstained. Among deputies who voted for the abolishment of privileged pensions was Damir Kajin of the Istrian Democratic Party.

The enaction of the changes will annul higher pensions under privileged conditions for MPs, Constitutional Court judges and the Chief State Auditor, who will instead qualify for pensions under the same conditions applicable to other citizens, in accordance with the pension scheme legislation.

This means that the upper limit for their pensions will be HRK 8,872 for 40 years in service, instead of HRK 17,000.

The parliament also voted in changes to the Act on the Prevention of Conflict of Interest enabling the government to propose members of management and supervisory boards of state-owned companies without inviting applications for those positions.

Changes to the Act on the State Agency for Deposit Insurance and Bank Rehabilitation were adopted by a majority vote as well, reducing the number of members of the Agency's management board. Also adopted were amendments to the Financial Services Supervisory Agency Act changing the agency's internal organisation and the structure of its management.