Minister says war veterans' pensions won't be cut

Labour and Pension System Minister Mirando Mrsic said on Monday in a comment on protesting disabled war veterans' suspicions that the separation of their pensions in two parts - one based on years of service and the other based on veteran status, will result in cuts in their pensions.

"War veterans' pensions remain the same. They have been separated so that the source of their financing is clear - pension insurance contributions or the state budget. This will be particularly important in determining pensions for war veterans who will retire from work," Mrsic told Hina.

The minister said that veterans with a minimum 100 days on the front line have guaranteed pensions amounting to HRK 2,400 or 45% of the average salary, regardless of the number of years of service. Veterans' pensions will be adjusted the same way as workers' pensions, depending on GDP growth, he said.

Under the Pension Insurance Act, which has been in force since the beginning of this year, the Croatian Pension Insurance Fund (HZMO) must separate pensions acquired under more favourable terms into two amounts - one determined in line with one's years of service and the other, acquired on the basis of special regulations.

Aside from veterans' pensions, the new legal provisions also refer to pensions of active military staff, members of Parliament, World War II Partisans and Home Guard members, former political prisoners, etc.

According to HZMO data, there were in October 72,349 recipients of pensions obtained under the Act on Homeland War Veterans, with the average pension allowance amounting to HRK 5,103. The exact number of retired veterans who worked before being mobilised will be known after the separation of pensions is completed.

The lowest average veteran pension in October amounted to HRK 867 and 27 people received it, while the highest average veteran pension amounted to HRK 9,345 and 4,902 veterans received it.

Most veterans, or 15,621, received the average pension in the amount of HRK 4,624.

Pension allowances were last adjusted in July 2013, going up one percent, and this year they have not been increased because neither salaries nor prices have grown.

Veterans' pensions have been slashed twice so far, according to HZMO data. They were first cut in July 2010, when pensions exceeding HRK 3,500 were reduced by 10%. The 2010 reduction of pensions did not refer to pensions of partially and fully disabled war veterans from the 1991-95 Homeland War.

Veterans' pensions were cut for the second time by 10% on 1 January 2014 if they exceeded HRK 5,000. The pension cut did not refer to pensions of partially and fully disabled war veterans, family pensions of orphaned children of Homeland War veterans, family pensions of children of Homeland War veterans killed in the war, and family pensions of veteran's widows and children.

(EUR 1 = HRK 7.6)