Federal Minister of Labor and Social Policy Adnan Delić spoke for Federal Television about the July adjustment of pensions, changes to the Law on PIO and the position of pensioners in the Federation of Bosnia and Herzegovina. He emphasized that the July increase of 3.5 percent represents an advance payment, that is, a temporary adjustment, and that the final percentage will be known after the calculation in September.
Commenting on pensioners’ reactions after the July increase in pensions, Delić said that it was an advance adjustment that was made so that pensioners would not have to wait another month for the increase.
“We have done an accontative adjustment of pensions. Accontative means a pre-calculated or temporary adjustment of pensions. Perhaps it is best that I did not insist that pensioners wait another month without this increase, and then they would receive the final amount of the second regular adjustment.”
He reminded that the projections during the amendments to the Law on PIO were different from the final data.
“Projections said that the first adjustment would amount to 11.9 percent, but it turned out to be 11.2 percent. Pensions have already been increased this year by 11.2 percent.”
He added that the second alignment is not yet final either.
“The second adjustment was projected at 5.2 percent, but we still do not know what the final amount will be. The final adjustment will take place in September, when we will know the exact percentage of the second regular adjustment.”
The Ministry does not determine the percentage of pension increases
When asked how much the Government of the Federation and the relevant ministry can influence the regular adjustment of pensions, Delić replied that they have no influence on it.
“The Ministry has absolutely no influence on any increase in the regular adjustment of pensions. This is exclusively done on the basis of the law.”
He explained that the adjustment is made according to the formula that was adopted at the request of the Union of Pensioners.
“Pensions are regularly adjusted to the growth of the average salary and the growth index of consumer prices. They are dictated by the growth index of consumer prices and movements on the international market. If we had not adopted the amendments to this law, pensions would have grown by about five percent this year. In this option, they will grow by about 15 percent or maybe more than 15 percent. We will know that only at the beginning of September.”
Projections are not promises
Speaking about the estimates that previously indicated the possibility of an increase of around six percent, Delić said that these are only official projections.
“These are official estimates made by the PIO Institute and the Federal Ministry of Finance. We receive certain projections from the competent institutions. These are not promises. They can always vary.”
He added that the difference, if any, will be paid to pensioners.
“Whatever the difference is compared to the July pension, it will be paid in September to all pensioners.”
In the end, he said that in the future, he will not present estimates before the final data is known.
“This time, I won’t promise anything. In the future, if I’m a minister, I won’t give advance adjustments like this anymore, but we’ll all wait for the official dates when we know the final figures, so that there won’t be any confusion like this.”
Amendments to the Act on PIO do not reduce acquired rights
Speaking about the remarks that appeared after the adoption of the amendments to the Law on Pension and Disability Insurance, especially when it comes to future pensioners, Delić said that they are not justified.
“These remarks are not justified. A pension is an earned, acquired right of every human being. How long you worked and how much was the amount of contributions paid to you during the mandatory insurance period, you will also receive a pension. It is not fair that someone who has worked for 15 years and someone who has worked for 40 years have the same pension.”
The veteran population retained all rights
Delić emphasized that the changes to the Act on Pensioners did not affect the rights of the veteran population.
“It is important to emphasize that in the Law on Pension and Disability Insurance, we did not touch anyone’s acquired rights, especially not the veteran population. The veteran population has its own ministry and its own law according to which they retire. Changes were made to that law that enabled them to retain absolutely all the rights they had before the changes.”
He added that certain rights were even extended.
“The veteran population has been given something more than that. They no longer have the obligation to be on the records of employment services for a year before retirement, and some other things have been resolved.”
What did the changes to the PIO Act bring?
Speaking about the most important news, Delić said that the change in the formula for the regular adjustment of pensions is the most significant change.
“The changes in the law brought what is most important to pensioners – a change in the formula that guaranteed them that this year their pensions will grow more than twice as compared to the existing law.”
Anyone who pays a death benefit for a deceased pensioner can refund these costs. Before the changes in the law, only immediate family members could do that.”
Pensioners deserve more
At the end of the conversation, Delić said that, despite all measures, he is aware that the position of pensioners is not yet satisfactory.
“I know it can’t be enough. The retirees who built and preserved this country deserve much more.”
However, he believes that significant progress has been made in the past period.
“We have made a huge step forward, especially when it comes to budget funds. We have allocated significant funds to mitigate the consequences of inflation and improve the rights, position and status of pensioners in society.”
