The proposal of the Law on Pension and Disability Insurance (PDI) was adopted in the House of Representatives of the Federation of Bosnia and Herzegovina (FBiH) Parliament with 51 votes.
What does the new law brings in practice bring to future and current pensioners?
The rating system is something that has already been adopted by all countries that have a similar system. Coefficient for calculation of pensions is 14 BAM.
Here is an example: A person who had an average salary for 40 years, will have 40 points. That means that this person will have a pension of 560 BAM.
With more points, the person will have a higher pension, and fewer points will lead to a lower pension. It should be emphasized that the lower limit is 326 BAM.
“It should be emphasized that those who were retired until July 31st 1998, will get increased pensions by 10 percent, and those who were retired until December 31st 2007, will get increased pensions by five percent, “ as ‘Dnevni avaz’ writes.
It is important to mention that pensions will be adjusted once a year, which was not the case so far, and that was the biggest problem of the existing system.
We recall that the alignment of pensions was excluded by the Office of the High Representative (OHR) intervention in 2001. Now pensions are adjusted according to the coefficient, using the well-known Swiss formula. The future value will be adjusted according to the increase in salaries.
In the adopted law, the basic limit is 40 years of work experience.
What if a worker does not have 40 years of work experience?
The worker who does not have 40 years of work experience has the opportunity to take an old-age pension for which it is necessary to be 65 years old, and have at least 15 years of work experience. So far, 20 years was the required number.