Pension/Disability Insurance Law harmonized with Constitutional Court judgments

Pension/Disability Insurance Law harmonized with Constitutional Court judgments

MOSTAR, September 16 (FENA) – At today’s session, the FBiH Government adopted the Bill on Amendments to the Law on Pension and Disability Insurance, which removes ambiguities and specifies some norms in the existing law.

The FBiH Minister of Labor and Social Policy Vesko Drljača reminded that in 2018, when the Law on Pension Insurance was adopted, the conclusion was adopted that the FBiH Government monitors the situation in that area, to make an analysis and propose amendments to the Law accordingly.

“This bill has 11 articles and a good part of those articles was implemented through previous conclusions of the Government so that we technically regulated the law, but these provisions have already been applied, especially when it comes to provisions relating to judgments of the Constitutional Court of FBiH,” said Minister Drljača.

A novelty in the Law is the possibility of extraordinary adjustment of pensions provided that the growth rate of real gross domestic product (GDP) in the previous year was higher than three percent and if there is no accumulated deficit in the budget of the Federation of BiH, up to the GDP growth rate in the previous year.

Earlier, extraordinary adjustment of pensions could happen in the event that GDP grew by at least 3 percent in two consecutive years, Drljača specified.

Extraordinary adjustment of pensions will not refer to the highest pensions realized by law until the ratio of the highest and the lowest pension reaches the ratio 1 to 5.

The amendments to the Law also define that the same rules that apply to police officers from the FBiH level apply to state-level police officers living in the territory of the Federation of BiH when retiring and calculating their pensions.

The novelty is that the participants in the defense of BiH are recognized one point for each full year of specialized work experience, instead of the previous 0.5.

“In that way, we show respect and eliminate the injustice we had towards the veterans. This norm was very important and all of us who worked on that project had a special motivation to resolve it,” said the Minister.