In accordance with the law, pensions for the month of August will be paid into the single account of the Treasury of the Federation of Bosnia and Herzegovina on Monday, September 5.
The average individual pension, received by 354,832 beneficiaries, amounts to BAM 544.98. The minimum pension is BAM 424.43, guaranteed 531.86, while the highest pension is BAM 2,174.48.
A total of 431,032 pensioners will receive their pension for the month of August.
The total funds needed to pay pensions for the month of August amount to around BAM 215 million, the Federal Institute for Safety and Health announced.
The President of the Association of Pensioners of the Federation of Bosnia and Herzegovina, Redzo Mehic, warned that if the Constitutional Court of the Federation of Bosnia and Herzegovina does not declare it unconstitutional, the law on the extraordinary adjustment of pensions obtained in under the Law on Service in the Armed Forces of Bosnia and Herzegovina (AFBiH) passed by the Federal Parliament pending a constitutional review, will create enormous stability problems for the Pension and Disability Insurance Institute of the FBiH and thus jeopardize the payment of the pensions of more than 400,000 beneficiaries.
At the same time, the Alliance of War Invalids of the Federation of BiH considers the legal solutions according to which the basis for calculating the pensions of members of the BiH Armed Forces to be increased to be unconstitutional.
Pension in the amount of salary
As a reminder, this law allows approximately 2,300 members of the AFBiH to receive pensions equal to their salaries, with a coefficient of 1.29. Thus, their average pension will amount to almost 1,200 BAM, while on the other hand, the other 426,469 retirees of the Federation have an average pension of around 460 BAM.
In December last year, when this law was passed by the House of Representatives of the FBiH Parliament, Federal Prime Minister Fadil Novalic asked the Constitutional Court to review its constitutionality and adopt a temporary measure to suspend its decision pending a court decision on the merits. However, although the Constitutional Court has not yet ruled, the controversial law, proposed by parliamentarians Zijat Music and Ivo Tadic and supported by most of their colleagues in both chambers, was adopted in late March in the House of Peoples.
“They did it for sure because we are in an election year, in order to collect certain political points, without thinking of the consequences”, explains Mehic.
He warns that the application of this law would completely expose the Pension and Invalidity Insurance Fund and bring everything back to the period when the doubt was BAM 270 million, the pensions were miserable and the payments were irregular. He says that the losses existed precisely because the old law on PIO, which had been in force for 20 years, led to the devastation of the PIO fund, whose budget could not support payments via the payment coefficient.
The fund was in deficit
“The fund was in deficit and we changed that and with the government of Prime Minister Fadil Novalic in 2018 we passed a new PIO law. Then we moved to the federal budget, the government became the guarantor of payments, and since then we have had continuity in surpluses and regular pension payments. If the application of this law for the members of the AFBiH begins now, tomorrow all the others, professors, doctors, lawyers, bankers, engineers, will begin to ask for the same rights and coefficients. This law could not be adopted, because the government does not comment on it, and its implementation cannot start now until the Constitutional Court rules,” notes Mehic.
He expects the law on extraordinary adjustment of pensions obtained under the law on service in the AFBiH to be declared unconstitutional and the law on pension and disability insurance, which entered into force on March 1. 2018, applies equally to all.
“The old law was canceled because of the coefficient of payment, which brought everything to ruin. It is not possible, because someone previously had this right, to ask for it to be applied when it no longer exists in the law on pension and invalidity insurance. Now we have a point system and it’s something completely different and fairer because it means length of service and how much you’ve been paid. We are simply looking for the same treatment for everyone. We have also asked for it in parliament, but everything has been under pressure there, because the elections are coming,” concludes Mehic.
“These days, we read on the networks swear words against the State, institutions, individuals, by certain professional soldiers of the Armies, so we are interested in what it is about. Considering that it is a pressure group, which passed a law that calculates the amount of pensions for members of the Armed Forces, which according to the current law would amount to 700 BAM, 1000 BAM, 1600 BAM , it increases at the level of the highest salary of each of them, so it increases by 29 percent. The Prime Minister of the FBiH found the constitutionality of this law questionable and sent it back for constitutional review. And now the group is offended, because they seem to know for themselves that the text is unconstitutional. So, gentlemen, they want to increase the amount of the pension, even according to the unconstitutional law, and they swear by the state and boast about it, ”they point out in the RVI Alliance.
In this organization of veterans, they recall that there are war invalids, demobilized veterans, members of martyred families, who receive minimum pensions or have not yet realized the right to retirement, and live with 50 BAM of personal disability allowance.
“They ask about their merits, whether they are worth the minimum pensions, and for professional officers who have been employed and paid for 25 years, three to four times more,” they state in a letter from the Federation of War Invalids. of the FBiH.