Good news for retirees: Here’s what changes with the new pension law
New Law O. Pension Insurance was sent to e-consultation, and the plan is for it to take effect in July. It brings new formulas to calculate pensions, an annual pension supplement, the so -called 13. Pension and measures for longer stay in the world of work, said Minister Marin Piletic.
– The objectives of reforms are to increase the pension in Croatia, reduce the differences and enable the greater participation of pensioners on the labor market because the trends are upward and I believe that interest exists – said the minister.
A new formula arrives, that is, the ratio from the current 70:30 to 85:15 is changing to make the legal alignment of pensions twice a year more favorable for pensioners. The growth index that is more favorable, the price or the salary will be watched.
– This change ultimately brings greater pensions to everyone – the minister said.
An annual pension supplement is in a colloquially called 13 pension, which is bound to the years of pension service, and the first payment is already expected at the end of the year. It will be counted as a multiplication of years of service and value that the Government will determine every year.
– They are more We don’t. It will not be symbolic, but in order to increase the average pension – the minister said, but he did not want to discover the amount. He claims it will be higher than five euros per year. The payment of the first supplement should be in December.
The law also brings to mothers acknowledged for 12 months of service for each born or adopted child, which will be about three percent of the pension of the child, the minister said. In connection with bonification for longer stay in the world of work, a condition of 35 years of service and a limit of five years is abolished, and this will take an average of 40 euros on average. The abolition of the penalization for early retirement pension at the age of 70 is also proposed, and this will take an average of 57 euros for 127,000 users on average. An increase in a disability pension is also planned, and for 218,000 users, the Law brings an increase for 74 euros. For more than 319,000 users of the lowest pensions, there is an increase of three percent, or an average of about ten euros more.
Retirement representatives They welcomed positive changes, but the attitude is that there is a space to improve. They do not give up the request that the pension alignment is 100 %. When it comes to the so -called 13 pension, they seek to be legally defined how much the value of one year of pension service will be. They also warn that 12 months of service will only get newly retired mothers for each child, while those who have retired before 2019 will not get anything, and they consider it discriminatory.
