Plenković says the new Pension Insurance Act will result in higher pensions

The new Pension Insurance Act came into force on Tuesday. Government believes that the new act will help pensioner’s better cope with their day-to-day living expenses. Government’s stated goal is to raise the average pension to €800 by the end of its current mandate.

At Thursday's cabinet session, Prime Minister Andrej Plenković commented on the new Pension Insurance Act, which came into force on Tuesday. Plenković noted that the new formula for biannually adjusting pensions, based on average change in salary and inflation, will result in an increase in pensions. He also said that government's goal is to raise the average pension in Croatia to €800 by the end of its mandate.

“Our intention is to have the average total pension be eight hundred euros by the end of our mandate. The most important changes deal with harmonizing pensions according to a more favorable index - 85 to 15. Mothers' additional years of service for every child born or adopted will be increased from six to twelve months. An annual bonus on pensions is being introduced, while penalties for people who take early old-age retirement will be abolished after turning seventy. Also being introduced is the opportunity for pensioners to work full-time after turning sixty-five while still receiving half of their pension. We are also introducing a three percent increase for the lowest pension bracket and disability pensions,” Plenković said.

Also at today’s cabinet session, government forwarded legislative amendments to parliament that will abolish fees for several banking services, while legislative amendments were also adopted that will change the rules for the election of management and supervisory boards in state-owned companies.

Source: HRT