Case report
https://doi.org/10.3935/rsp.v1i2.600
Main Intentions of the Proposition of the New Law on Retirement Insurance
Ante Škember
; MIORH
Abstract
The existing retirement system of Republic of Croatia is not based on the market economy categories but on the socialist theory of associated labour, economy by agreement and public ownership. Within such a system there is too much of “sociality” and “benefits” and there is also a distortion of the relationship that ought to exist between investment and beneficiary rights. Such a pension insurance system does not satisfy the transitional period of the Croatian society heading towards market economy and it will be even less appropriate for the social insurance conditions of the market economy. It is therefore necessary to carry out a reform of the retirement system, trying to preserve at the same time the principle of the acquired rights based on the work and investments of the existing benefits and get rig of social and protective institutes and rights, slowly introducing a healthy retirement insurance system that would be economically healthy. In order to be able to accomplish the above mentioned characteristics of the retirement insurance, it is important to reform the existing retirement system in three basic segments: with respect to the acquisition to reform the existing retirement right conditions regarding the pensions level, balancing them with the retirement insurance finance. For that purpose, it is necessary to establish the investment funds for the system of retirement and disability insurance. These funds shall have two basic functions: 1) by additional fund raising, they will lower the contribution rates for the retirement system and thus strengthen the accumulative and reproductive capacity of Croatian economy, and 2) they will increase pensions and maintain their real value.
Keywords
Hrčak ID:
29709
URI
Publication date:
1.2.1994.
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