Krnjić for NAP: It is good that the PIO Law was not adopted with an increased point value, it would have broken the pension system

The proposal of the PIO law did not receive the necessary majority in the House of Peoples of the Parliament of the Federation of Bosnia and Herzegovina today. 24 delegates voted against the proposal, 17 were in favor, and 9 abstained.

The delegates previously accepted, by a majority of votes, two amendments submitted by the Croat Club. One of these amendments proposed that the point value for calculating the pension amount be increased from 13.6 to 14.3 KM. The other amendment proposed that the implementation of this law be postponed for six months.

Earlier, warnings were issued that the budget of the Federation of Bosnia and Herzegovina could hardly sustain even a coefficient of 13.6 KM, and certainly could not sustain an additionally increased coefficient.

The Bosniak Club opposed this proposal of the law.

Zijad Krnjić, director of the Federal PIO Institute, told the Patria news agency that “it is good that the law was not adopted in the manner proposed today, because it would lead to the collapse of the pension system in the FBiH within a few years.”

- Today, there was an attempt to raise the point value for calculating pensions from 13.6 to 14.3 KM. Such an initial point value for calculating pensions would mean certain bankruptcy of the pension system in the FBiH within just a few years. It would also lead to a reduction in pensions. We would have what happened last year in Greece. The attempt to raise the initial point value for calculating pensions was destructive. I think it is better that this proposal of the law did not pass – Krnjić believes, writes Patria.