The Croatian parliament on Thursday started a debated on the government-sponsored bill to cut by 10 per cent privileged pensions exceeding HRK 3,500.
Under the bill, the privileged pensions, which are regulated by a dozen laws, will be reduced under one law, which will take effect on July 1.
Economy Minister Djuro Popijac said the measure was part of the government's economic recovery programme
The bill would cut pensions of parliamentary deputies, former government members, Constitutional Court Judges and chief state auditor, regulated by the law on the rights and obligations of parliamentary deputies.
The pensions of the president of the republic and war veterans and members of their families would also be reduced
The move will not apply to the pensions of 100-percent disabled war veterans, miners who worked in the Tupljak coal mine, and people who were exposed to asbestos in their workplace.
The pensions below HRK 3,500 will not be reduced, and it will be ensured that the reduced privileged pensions are not lower than that.
Some 90,000 budget beneficiaries will receive reduced pensions, and the law will be implemented by the Croatian Pension Insurance Agency.
The bill will save HRK 250 million in this year's budget, HRK 610 million in the 2011 budget and HRK 620 million in the 2012 budget.
The bill is now being discussed by deputies.
