- Published: 14.03.2015.
Minister says funds won't be transferred from second to first pension pillar
Labour and Pension System Minister Mirando Mrsic has dismissed the possibility of transferring funds from the second to the first pension pillar, saying that in the long run it would impoverish all workers paying contributions into the second pillar.
Mrsic made the statement during a visit to Split on Saturday, when asked to comment on media reports about the future of the second pension pillar, which is based on private insurance funds.
According to Mrsic, transferring funds from the second pension pillar to the first, which is based on the principle of inter-generational solidarity, would constitute an act of nationalisation and would not be good.
"I do not believe that it will happen because those funds are ours. Anyone thinking that funds in the second pillar should be transferred to the first pillar should first ask each one of us if we want it or not."
Asked if pension insurance funds were interested in running the Croatian Highways (HAC) operator, which is what Prime Minister Zoran Milanovic claimed when announcing that the government was giving up on its plan to monetise the debt of two state-owned motorway operators by leasing out the motorways, Mrsic said the question should be put to the pension funds.
"Changes to the law on pension funds have created legal conditions for pension funds to participate in strategic projects of national interest," he added.
He recalled that every pension fund had its own management company.
"I would like to reiterate that the legal framework exists, it is up to them to see what their interest would be, and that would be the interest of all of us who invest our money in pension funds."
Asked if he was surprised by PM Milanovic's statement that the government was giving up on its debt monetisation plan, Mrsic said that for some time now the government had been following citizens' attitude and activities regarding a possible referendum on motorway lease.
"Citizens have sent us a very clear message that they want us to keep the motorways, but that they also have nothing against investing the money we have all paid into pension funds into our motorways," Mrsic said.
Asked in what way the government could solve the problems of veterans and disabled veterans of the 1991-95 Homeland War who have been protesting outside the Veterans Ministry in Zagreb for more than four months, Mrsic said the problems could be solved through talks.
"One of the veterans' demands was that the separation of pensions (into a part to be paid from contributions based on years of service and a part paid in line with special regulations) should not apply to war veterans, but be postponed for a period of six months. We have done it and shown good will, and I hope veterans will show good will too," said Mrsic.
Asked if he feared possible violence at today's protest against the veterans' protest, to be organised by activists of the Occupy Croatia movement, Mrsic said all those in charge of public peace and order would do all in their power to prevent any conflicts.
(Hina) rml