At the session of the House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina (FBiH) yesterday, the state of the Pension and Disability Insurance Fund (PIO/MIO) and the position of pensioners were discussed. The Federal Minister of Labor and Social Policy, Adnan Delic, emphasized that the Fund is currently stable, but that long-term and systemic reforms are needed to ensure its sustainability and to improve the living standard of pensioners.
In a statement to journalists, Delic said that special attention was given to recipients of minimum pensions.
A new formula for pension calculation has been proposed, which would include the average and minimum salary, as well as the consumer price index growth.
“The pensioners’ demand is for a 70:30 ratio. It has been assessed as fiscally unsustainable at this time, and a compromise model of 60:40 is being considered,” said Delic.
He also added that the issue of so-called “unearned pensions“ is important, with the goal of introducing a fairer system that places greater value on longer working years.
“Here we are also talking about the problem of unearned pensions, where someone with 15 years of work experience gains the right to a minimum pension and in that way creates a burden for the FBiH. For me, it is not fair that someone who worked for 15 years receives the same amount as someone who worked for 40 years,” stated Minister Delic.
He also pointed out the importance of higher employment, because, as he emphasized, the number of employed people directly affects the stability of the pension system.
Delic also announced a one-time aid payment to pensioners in a total amount exceeding 70 million BAM, which they will receive with the next pension, as a response to the rising cost of living.
He also reminded that pensioners have been enabled to work and receive a pension at the same time, thereby encouraging the active participation of those who want and are able to do so.
“The competent ministry, in cooperation with the Government of FBiH and pensioners’ representatives, continues to work on amending the Law on PIO, with the aim of achieving a fair, sustainable and socially sensitive system,” concluded Delic.
