Government adopts PIO law: Coefficient for pension calculation will be 13.6

The Federal Government decided today to resubmit the Draft Law on Pension and Disability Insurance to the Parliament of the Federation of Bosnia and Herzegovina for adoption under urgent procedure.

It is the identical text of the law that was previously considered and adopted in the form of a Draft at the Government of the Federation of Bosnia and Herzegovina, on which opinions were given by the Federal Ministry of Justice, the Federal Ministry of Finance, as well as the Office of the Government of the FBiH for Legislation and Compliance with European Union Regulations.

In accordance with the discussions and suggestions of the House of Representatives and the House of Peoples of the Parliament of the FBiH, paragraphs 1 and 2 of Article 46 of the Law have been more precisely defined to avoid any dilemmas regarding the method of determining the annual coefficient. The application of the Law has also been postponed to July 1, 2017, to allow the competent authorities sufficient time for its implementation.

The point value is 13.6, as additional calculations by the Federal PIO Institute determined that this coefficient is the upper limit of the financial stability of the pension system.