Zijad Krnjić, Director of the Federal Institute for Pension and Disability Insurance, commented on whether or not the retirees can expect regular pensions next year.
“Of course we can expect regular pensions. Payment of pensions for December will begin on January 7. Pensioners should not be worried about this. We can say that 2016 ended pretty well and yesterday we adopted our budget, which is a legal condition for payment of pensions. Budget and plan are grounded on realistic expectations and we should expect a normal dynamics,” said Krnjić.
Federal Institute for Pension and Disability Insurance has the most objections on the starting value of the point on the basis of which the amount of pensions is defined. Eventually, the point was defined at 13.60 BAM.
“According to the new law, the amount of pension will be defined differently than according to the previous law. Now the amount of pension will be defined on the basis of the number of points that a person collects during their working experience. The sum of points, multiplied by the value of the point, will give the amount of pensions. Starting value of the point is economically the most important parameter. Our calculations say that the starting value of the point is too high. Those who retired years ago will be in a more favorable position. The starting value should have been 11.70 BAM, and it corresponds to the current average pension. Pensions will increase by 26 percent. The existing Law has been changed too late; it should have been changed ten years ago. People from public administration and wealthy public enterprises have too high pensions and many people take them as a reference value, instead of taking those who have 326 BAM of pension. These 400.000 people will have 26 percent higher pensions,” said Krnjić.
(Source: ba.n1info.com)
