RS Pension and Disability Insurance Fund reduced losses

Among other things, the audit report about the RS Pension and Disability Insurance Fund for 2011 stated that the RS Pension and Disability Insurance Fund finished the year 2011 with a 10,724,738 surplus, and so the cumulative deficit from the earlier period has been reduced from 90,676,173 BAM to 80,594,687 BAM.

In 2011, the income statement showed the 926,814,288 BAM revenues, which is slightly higer than in the previous year, with expenditures in the amount of 916,089,550 BAM which are at the level of expenditure for the previous year.

Although the Pension Fund stopped the trend of increasing the deficit, the funds of this period were used to settle the debt incurred by 31 December 2009, which, in the opinion of the audit is not in accordance with the RS Law on the Budget System.

Also, the audit warned that the pension benefits accrued in excess of the available funds, which is not in accordance with the Law on Pension and Disability Insurance. “Expenditure on behalf of the citizens of remittances from pension insurance are not planned on the basis of available resources, but using the coefficient 1.06, which is not in accordance with the Law on Pension and Disability Insurance,” said the audit.

RS Pension and Disability Insurance Fund that audit for 2011 is the best ever, and they had to pay the pensions using the coefficient 1.06, because the RS National Assembly gave a conclusion in 2008.

“All these pensions by 1.06 coefficients are translated in the same amount by the coefficient of one. We had a problem with that, but the audit said that the law has stronger legal effect than the RSNA conclusion and in principle it is a recommendation from the audit, to which we cannot effect, “said Mladen Milić, manager of the fund.

In the audit repor about the Fund PIO, it states that the obligations at the end of 2011 were 153,822,816 BAM of which the short-term 117,845,392 BAM, and long-term was 35,977,424 BAM.

“The revision of the financial plan of the Fund for 2011, 36,050,000 BAM was planned total expenditure for the repayment of debts, within which a major part is related to the repayment of the loan”, said the audit report.

Expenditures in 2011were recorded in the amount of 916,089,550 BAM, and they refer to expenses for personal income 13,507,022 BAM, expenses arising from the use of goods and services 10,188,071 BAM, financing expenses and other financial expenses 1,674,259 BAM, expenses arising from social security paid by the institution of compulsory social security 889 662 792 BAM and expenses of accounting nature 1,057,406 BAM.

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