Law on Pension and Disability Insurance on the Agenda Today: Method of Calculation and Pension Adjustment to Change

(Patria) - At the 28th regular session of the House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina, to be held on Monday, January 19, the Proposal for Amendments and Additions to the Law on Pension and Disability Insurance, which the Government of the Federation of BiH sent to the parliamentary procedure at the beginning of this month, will be considered under an expedited procedure.

The amendments to the Law on Pension and Disability Insurance were prepared in agreement and cooperation, and at the request of representatives of pensioners gathered in the Union of Pensioners' Associations of the Federation of BiH.

It was precisely the representatives of pensioners who initiated the amendments to Article 81 of the Law, which determines the right to the lowest pension and the method of its protection, and if the amendments to the Law are adopted, the amount of the lowest pension will be linked to the length of the acquired pension period, in order to protect pensioners, but also to value a full working life.

The draft law also envisages changes to the formula for adjusting pensions, which means that pension adjustments will be made based on a combination of the consumer price index and the wage growth index in a 60:40 ratio, using the indicator that is more favorable to pensioners in the given calculation period, with the aim of preserving the real value of pensions and their adjustment to the growth of living costs and standards.

At the same session of the House of Representatives, amendments and additions to three laws within the jurisdiction of the Ministry for Veterans' Affairs, which regulate the retirement of veteran categories, will also be considered. These amendments have been prepared to align the regulations with the amendments to the Law on Pension and Disability Insurance and to ensure that veterans do not suffer any negative consequences due to changes in pension legislation.

By adopting these legal solutions under an expedited procedure, the Government seeks to protect the rights of existing pensioners, value the work and contribution of future pensioners, preserve the stability of the pension system, and ensure its long-term sustainability, it was announced today from the Federal Ministry of Labour and Social Policy.