Krnjic: The next month the pension will be calculated according to the new Law on Pension and Disability Insurance Act

The next month, pensions will be calculated according to the new Law on Pension and Disability Insurance - confirmed Feni director of the Federal Institute for Pension and Disability Insurance Zijad Krnjic, adding that the employees of the Institute are very busy.

He is convinced that the Law on the Pension and Disability Insurance Fund will stabilize for the Federation and will correct the injustice, because there will not be uneconomily high and unrealistic small pensions, but in line with salaries and seniority.

- It will positively affect the future of the Federation in terms of economic development - Krnjic stressed.

The Law on PIO will enter into force on the eighth day of its publication in the Official Gazette of FBiH.

The law introduced a bonus system for the calculation of pensions, which is why the employees of the Institute, as Krnjic says, are waiting for a huge job, but it is for the benefit of the Federation.

The new law on PIO was repeatedly in parliamentary procedure. It introduces a new score system for calculating the amount of pensions, based on the years of service of insured persons and paid contributions.

The calculation is also made on the basis of the average salary in the Federation of BiH. For example, if the insured had a salary in the amount of the average in the FBiH, and has completed 40 years of service and has paid contributions, for each year he is counted one personal point.

The 40 points thus obtained are multiplied by the general prescribed rate of 14 KM and calculates the pension amount of 560 KM (40X14 = 560). If the salary is, for example, half the average in the FBiH, the personal score is 0.5, and twice the amount is paid to the insured for each year of service for two personal points. The amounts between these values shall be multiplied by the appropriately calculated personal income.

The new prescribed criterion for calculating pensions to police officers is not the average salary in the FBiH, but the best five-year average achieved in the branch during the service period.

• 25 Jan, 2018
• 998 views