PIO Director for NAP: Adopt the PIO Law, Do Not Bring Half-Measures

Director of the Federal Pension and Disability Insurance Fund Zijad Krinjić believes it is not good for the House of Peoples of the Federal Parliament to approve amendments to the PIO Law, which would mean retirement under more favorable conditions for several thousand people, as this would be an additional burden on the pension fund in the Federation.

Krnjić, in a comment for the Patria agency, said that work should be done on adopting a new PIO law, which is a much better solution than any amendments to the existing law.

The current law on pension and disability insurance allowed workers to retire under more favorable conditions until the end of 2015, after women completed 30 years of service and reached 55 years of age, or after men completed 35 years of service and reached 60 years of age. With the end of 2015, such a possibility was abolished.

According to the current provisions of the PIO Law in the Federation, an insured person has the right to an old-age pension when they reach 65 years of age and at least 20 years of pensionable service. An insured person acquires the right to an old-age pension when they complete 40 years of pensionable service, regardless of age.

Representatives of the House of Representatives of the FBiH Parliament adopted at the last session of this house the SDP proposal to reintroduce the possibility of early retirement through amendments to the existing law. Before it enters into force, the decision must also pass through the House of Peoples of the Federal Parliament.

The proposer mentions around 30,000 people who could exercise the right to early retirement if the proposal receives support in the House of Peoples as well.

PIO Director Zijad Krnjić believes that such a decision is contrary to the Strategy for Reform of the Pension System in FBiH, which provides for a gradual increase in the age limit for retirement, and that it is not clear how the Fund would secure additional millions for new pensioners.

July pensions in the Federation will be received by 410,134 beneficiaries, for which it is necessary to secure around 165 million KM, NAP writes.