Novalić tries to put out the fire: No pension cuts, Minister Drljača misunderstood

In response to media and other disinformation about alleged pension cuts in the Federation of Bosnia and Herzegovina, the Prime Minister of the Federation of Bosnia and Herzegovina, Fadil Novalić, issued a press release, as reported by the Patria news agency.

“We were taken aback by the disinformation about alleged pension cuts in the Federation of Bosnia and Herzegovina, because the Government of the Federation of Bosnia and Herzegovina is not considering such a move in any way, nor will it allow a reduction in the achieved level of pension rights, but is exclusively dedicated to adopting new legal solutions in the area of pension and disability insurance,” the statement by the Prime Minister of the Federation of Bosnia and Herzegovina, Fadil Novalić, reads.

“This is also evident from today's statement by the relevant minister, Vesko Drljača, from which it is clear that there was a misinterpretation of his request addressed to the Federal Pension and Disability Insurance Institute for the adoption of a concrete plan of measures.

On this occasion, on behalf of the Government of the Federation of Bosnia and Herzegovina, I responsibly confirm that there will be no pension cuts,” the federal prime minister adds in the statement.

The Federal Ministry of Labour and Social Policy, headed by Minister Vesko Drljača, sent a letter to the Pension and Disability Insurance Institute, stating that it requests the mandatory application of Article 51 of the Law on Pension and Disability Insurance regarding the determination of the coefficient for the payment of January pensions.

Simply put, this article stipulates that the coefficient is determined on a monthly basis according to the revenues of that month. Given that January traditionally has lower revenues, this would mean an obligation to reduce the coefficient.