SDP: Social Pensions for All Over 65

Lajla Mlinarić, Daria Lešić, Javno

Croatia

May 7, 2007
 

Davorko Vidovic presented the retirement strategy as the SDP’s third electoral project, after health and economic reform.
Head of the Social Democratic Party’s (SDP) retirement strategy, Davorko Vidovic, stressed that the pension system was one of the key problems of all countries in the world, Croatia included.

He explained that there were several reasons for this, the first being demography because age is increasing in the world, and economy because the pension insurance system is the most expensive in all countries in the world.

-There is no country or government that can lead a country sensibly without having an answer to this issue – Vidovic said.

Average pensions keep decreasing

The SDP opted for the chief goal of their campaign to be economic growth, and though it an increase in pensions and life standard. Their motto is: Fairer pensions for a better life.

-We are not saying fair, but fairer – Vidovic stressed, adding that this meant that all should equally participate in such a system.

Vidovic assessed the current pension system in Croatia as poor because the trend of decreasing pensions continues and, according to his opinion, such a tendency will not change.

-Such a negative trend must be stopped – Vidovic said, adding that the Croatian Democratic Union (HDZ) had during its mandate stopped pension reform, so future pensioners are in danger of getting even lower pensions.

The SDP displayed statistical data according to which, out of 1,106,335 pensioners in Croatia, more than a third had pensions lower than 1,600 kuna, which is considered borderline poverty.

Pensioners subjected to manipulation by the HDZ

Also, the SDP says that ‘new’ pensioners are in an extremely unfavourable position, meaning those who retired after January 1, 1999, because their average pension does not go above 1,400 kuna.

-The share of pensions in the GDP is decreasing and is now below the European average – Vidovic said.

The SDP reprimanded the ruling HDZ for such a negative condition of the pension system in Croatia
because, as they say, the HDZ offered no solution for any of the said problems.

-On the contrary, pensioners are subjected to strong polarisation and manipulation by the government and attempts to buy their sympathy – said the head of the SDP’s expert group.

As a solution to this situation, the SDP suggests an increase of pension expenditures by ten percent, that is, 2.5 billion kuna in the first year of mandate, equalising ‘old’ and ‘new’ pensioners so that the ‘new’ pensioners get additions, a so-called government pension that would amount to between 100 and 1,000 kuna.

Social pensions for all above 65 years

The amount would depend on the time of retirement, that is, those who retire earlier would get an addition of 100 kuna and pensioners with more years of service would get higher additions.

In its strategy the SDP also suggests the introduction of social pensions for all those above 65 years of age who do not have any incomes. Such a project would cost the government budget some 360 million kuna, according to SDP’s estimates.

In conclusion, Vidovic recalled that pensions had grown by 562 kuna, that is, one third, during the SDP’s mandate.

-We treat pensioners as valuable citizens, while for the HDZ they are only voters. The ruling party offers big words and small actions, while we are focused on permanent solutions – Vidovic said.