Delić: Amendment to the Pension and Disability Insurance Law ensures fund stability and protects pensioners' rights

(Patria) - The House of Representatives of the FBiH Parliament adopted an amendment to Article 82 of the Pension and Disability Insurance (PIO) Law at today's 17th regular session.

The Federal Ministry of Labour and Social Policy announced this evening that this amendment plays a particularly important role in preserving the stability of the PIO Fund, protecting pensioners' rights, and preventing abuses of the FBiH pension system.

"We remind you that Article 82 of the PIO Law was enacted to protect the Fund from abuses, specifically in cases of pension beneficiaries who do not reside in the FBiH. To ensure the protection of the Fund, a Rulebook was previously adopted that specified the conditions for exercising the right to the difference in entity pension ratios up to the minimum amount.

However, the Supreme Court of the Federation of Bosnia and Herzegovina, in its judgment of 12.10.2023, determined that this issue cannot be regulated by a Rulebook, but exclusively by law.

In this regard, the Federal Ministry of Labour and Social Policy has prepared an amendment to the Law which, in addition to meeting the Court's requirements, significantly contributes to preserving the financial stability of the Fund.

Indeed, the failure to adopt this amendment has already caused damage of eight million KM during 2024, further endangering the already overburdened Pension and Disability Insurance Fund and its increasing dependence on the FBiH budget.

The PIO Fund is a budget user, and its financial plan is part of the FBiH budget, from which significant funds are allocated each year to enable regular pension payments.

Pension payments directly depend on the financial stability of the Fund, and pensioners, who live on the edge of existence, must not be exposed to the risk of delays or jeopardizing their income.

Therefore, this amendment to the law is not only a prevention of abuses but also an expression of our concern for pensioners, as well as our responsibility to the entire society," the statement from the Ministry, signed by Minister Adnan Delić, reads.

Furthermore, the Ministry adds that the issue of PIO Fund stability is of strategic importance for the future of FBiH, and this amendment protects not only current beneficiaries but also future generations of pensioners, as a stable and functional pension system is the foundation of social security for all citizens of FBiH.