The Federation of BiH has received a new Law on PIO

The Federation of Bosnia and Herzegovina received a new Law on Pension and Disability Insurance (PIO).

The law was approved by majority vote today at an extraordinary session of the House of Peoples of the Federal Parliament, and yesterday at a session of the House of Representatives.

The House of Peoples has obligated the proposer, the Federal Government, to propose solutions for possible shortcomings of the law in the next six months of monitoring the application. In the next today's conclusion of the House of Peoples, proposed by the Croatian parliamentary delegation, the Government was ordered to consider the possibility of increasing the minimum pensions because they are beneficiaries of socially vulnerable categories of population.

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.

Immediately after the adoption of the Law on Pension and Disability Insurance Act, the House of Peoples' delegates, without debate, adopted the Law on Amendments to the Law on FBiH Police Officials. This act separately regulates the manner of retirement of police officers, which they asked the Government themselves, claiming that the new Law on Pension and Disability Insurance was unfavorable for them, because according to the method of calculation that stipulates, their pensions were less than in the previous system.

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.

Delegates of the House of Peoples today also accepted the proposed amendments to the Law on Determining and Exercising Claims of Citizens in the Privatization Procedure. Amendments extend the validity period and use of certificates as a payment facility for the purchase of flats with occupancy rights.

• 25 Jan, 2018
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