Pension System Investment Project

closed

The development objectives of the Pension System Investment Project, are to improve Croatia's system for reporting, and enforcing social contributions, and personal income taxes, particularly for the new system of funded pensions, and, to strengthen capacities in the agencies managing the pension system, for the appropriate operation, and regulation of the multi-pillar pension system. The project's main components will: 1) finance technical assistance (TA), training, and goods for the HAGENA and REGOS agencies, to act as second pillar administrators, and regulators. The component includes consulting services, workshops and study tours, including a focus on information technology (IT); 2) predominantly finance incremental, recurrent costs associated with the activities of the Financial Agency (FINA) and the Central Computer Center for the City of Zagreb (GZAOP) in the operation of the employer reporting system, including those functions associated with the introduction of funded pensions. TA will be provided to the Ministry of Finance (MOF), to develop FINA's restructuring program, and to support MOF consolidation of control on employer tax collection; 3) support the Pension Institute (PI) in the implementation of a new strategy that focuses on a narrower range of core functions, seeking to substantially increase security, through a limited TA to improve public service; and, 4) finance the Project Implementation Unit's costs, and, additional TA by an IT specialist.