The unsustainable introduction of 30 thousand pensioners into the system threatens to reduce pensions

The House of Representatives of the Parliament of the Federation of BiH adopted amendments to the Law on Pension and Disability Insurance, which, according to the applicants' estimates, enabled the retirement of 30 thousand persons. This practice provoked frustration at the Federal Institute for Pension and Disability Insurance.

Director of the Federal Institute for PIO Zijad Krnjic warned that the changes, if they receive support in the House of Peoples of the Parliament of the Federation of BiH, will lead to an unsustainable situation in the pension-disability system.

"This decision is contrary to the Pension Reform Strategy of the FBiH, which foresees a gradual shift of the retirement age to the top." The early retirement of younger people will be strained by financial resources, Krnjic said.

He added that, if we count on a figure of 30 thousand, how much the proposer estimated that new pensioners would be introduced into the system, this would mean an additional burden of about 10 million KM a month, or more than 120 million KM per year.

"That's close to seven percent of the total fund, there is no coverage for this amount, nor can it be expected that future revenues may be higher for this amount, so it is financially unsustainable," said the director of the Federal Institute for PIO.

When asked how valid information is that it is about introducing 30,000 new pensioners into the system, Krnjic explains that it is not possible to be precise.

"The proposer's assessment is that 30,000 people will be able to retire. Our records are from Bosnia and Herzegovina, but they are entered into the law in full time." We can not know how much work he had in Slovenia, Croatia or other countries, Does not apply for a pension. However, if the proposer has assessed it, then this can be treated as a data, "said Krnjic.

He added that, if KM 120 million is not available, the proposer should answer the question of what the solution is.

"Either the pensions will be reduced, or someone will give us loans and we will pay both children and grandchildren," Krnjic said, adding that he would like the adoption of a change of mistake that he hopes will not be finally adopted.

Federation Minister of Labor and Social Policy Vesko Drljaca talked today with a delegation of the Association of Pensioners' Associations of FBiH about the problems that affect this population, their position and amendments to the Law on Pension and Disability Insurance Act adopted by the House of Representatives of the Parliament of the FBiH.

"Together we entered this method of solving problems, together we will 'press' the House of People of the FBiH Parliament to not adopt this law. The Government's view is that this law is negative and that it represents morality erosion, undermines the stability of the pension system, produces huge debts, and Disables amendments to the laws that are planned, and they foresee the systemic way of resolving and the treasury mode of operation, "Minister Drljaca said.

• 29 Jul, 2017
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