CCI: Put the Pension Fund in FBiH on the Budget, Pay Pensions Before Salaries to Ministers and Prime Minister

The report 'State of the Nation' published by the Center for Civil Initiatives states that the pension system in Bosnia and Herzegovina is permanently destabilized. The number of pensioners in the BiH entity of Republika Srpska is higher than the number of employed people. The Federation of BiH is 'slipping' towards such a scenario, writes Patria. 

- The Pension Fund of RS has collapsed and is now on the budget of Republika Srpska. The Pension Fund in the Federation is forced to borrow money from the Post Office, to take out commercial loans at high interest rates... All of this is definitely leading to a complete collapse of the pension system in the Federation – said Adis Arapović, manager at CCI. He reminded that pensions in FBiH are delayed by up to three weeks. Some pensioners receive their pensions on the fifth day of the month, and some even at the end of the month.

- Our recommendation is that all pensioners must receive their pensions within the legally prescribed period and at the same time. By delaying pensions, huge discrimination is being created among pensioners – warns Arapović. 

Experts from CCI believe that collecting receivables from the Pension and Disability Insurance of FBiH is the only way to recover the pension system in this BiH entity. They remind that the debts to PIO FBiH are enormous, primarily large debts are owed by public companies. 

If the Government cannot ensure the collection of these debts, or if it cannot stabilize the Pension Fund of FBiH, CCI proposes that the Federation of BiH also place the Pension Fund on the budget of FBiH, 'so that pensioners receive their pensions before the prime minister and state officials receive their salaries'.

- The tax debt of public companies is destroying the pension and health systems of BiH, but it is also destroying the principles of equality before the law. It is not right that someone has to pay taxes, and someone does not. Someone's business is closed due to unpaid a few thousand KM, while someone owes 200 million KM in taxes – says Arapović, writes Patria.