No increase in pensions, basic demand is regular payment by the 5th of the month

Prime Minister of the Federation of Bosnia and Herzegovina Fadil Novalić, Federal Minister of Labour and Social Policy Vesko Drljača, with associates, and representatives of the Federal Ministry of Finance today held a meeting at the seat of the FBiH Government, where the demands of the Executive Board of the Association of Pensioners/Retirees in the Federation of BiH from August 11 this year were considered. The delegation of pensioners was led by the President of the Pensioners' Association in FBiH, Omer Omerefendić.

The aim of the meeting, organised on the initiative of Prime Minister Novalić, was to familiarise the representatives of this association with the Government's activities in this area before September, when the adoption of the new law on pension and disability insurance of FBiH is planned, and to remove obstacles and doubts if any exist.

It was assessed that the demands of the pensioners' association are compatible with the efforts of the Federal Government to stabilise the pension fund and ensure that pensions are paid regularly.

Minister Drljača, in response to the first demand of pensioners, which requested that pensions be paid by the fifth of the month, said that in the future funds for this purpose will be secured by that date and that this issue will also be regulated by the new law.

It was emphasised that the pension fund will be stabilised by introducing a treasury method of operation and that pension payments will be secured based on real gross domestic product growth and the inflation rate, which will be divided by two.

- For us, the demand regarding the payment of death benefits for pensioners is also fair, which is provided for in the Draft Law on PIO. Also, the new law leaves room for providing assistance to pensioners for medical treatment, in accordance with available funds – said Minister Drljača.

The pensioners' demand for exemption from paying taxes and contributions on funds collected from pensioners' membership fees was also considered, and it was agreed to seek an acceptable solution by amending the legal regulations in this area.

Regarding a possible increase in pensions, it was stated that this will be possible after the stabilisation of the pension fund and in cooperation with the Association of Pensioners/Retirees in the Federation of BiH.