Perovic: Increase of pensions would cause payment delays

#DušanPerović #Pensions

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July pensions will be increased by three, or 20 percent for those with lowest income by adopting the Proposal of the Amendment law of the Law for pension insurance of Government of Montenegro.

However, a group of parliament members suggested recently that this increase should be paid out retroactivelly from 11st of January, and that the increase for those with lowest income should be 30%. In an interview given to Dnevne newspaper, director of PIO Fund Dusan Perovic said that accepting such a proposal would endanger stability and sustainability of our pension system, as well as regularity of payments this year.

“Any additional increase in pensions or other rights form pension insurance fund would endanger stability and sustainability of the pension system, as well as regularity of payments this year. Also, further increase of any of these rights would increase the deficit of PIO Fund which is around 42 percent, as well as the deficit of national budget”, explained Perovic.

Budget of PIO Fund of Montenegro for 2016 has enough funds for regular payments of all rights arising from pension and insurance for persons with disabilites, including the additional adjustment of the nominal amount of the lowest pensions for 20 percent, as well as adjustment of pensions for one personal point and other rights for three percent, starting from 1st of July in 2016.

Source: Cafe Del Montenegro