Revisions to the Pension and Voluntary Pension Fund Law in Alignment with Constitutional Guidelines
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The Legislative Committee has approved the amendments to the Law on Pension and Disability Insurance (PIO), which will allow beneficiaries of proportional pensions to receive a minimum pension of 450 euros, affirming their compliance with the Constitution and legal standards.
Additionally, the Committee has endorsed the Bill on Voluntary Pension Funds.
MPs are scheduled to vote on these regulations in the plenary session.
Mersida Aljićević, State Secretary of the Ministry of Social Welfare, Family Care and Demography, noted that the PIO changes aim to enhance the circumstances for individuals receiving proportional pensions, in accordance with international social security agreements.
“In line with this, we propose to introduce payments to ensure beneficiaries of proportional pensions receive at least the minimum pension, should their total amounts fall below 450 euros. Furthermore, considering the amendments to the Law on Contributions for Mandatory Social Insurance which have adjusted the contribution rates—reducing the PIO contribution for employees from 15 percent to 10 percent and eliminating employer contributions—there is also a proposed reduction in extended insurance contributions for insured individuals as per Article 66 of the Law,” Aljićević explained.
Dragan Bojović, the President of the Legislative Committee, emphasized the need for clarification on why this law should take effect immediately upon its publication in the Official Gazette, pointing to the urgency and the prolonged waiting period for pensioners.
Aleksandra Popović, Director General of the Directorate for the Financial System and Coordination of Wage Policies at the Ministry of Finance, stated that the draft of the Law on Voluntary Pension Funds is designed to align domestic legislation with European standards and to regulate the management of these voluntary funds.
She highlighted that this alignment is a prerequisite for fulfilling the benchmarks outlined in Chapter 9 – Financial Services.
“The proposed legislation seeks to enhance the Montenegrin market’s appeal to both domestic and foreign investors while establishing a proper regulatory framework for pension fund management companies in accordance with EU standards. The regulation is not expected to impose costs on the economy unless citizens choose to invest in voluntary funds. The draft law was developed as part of a project supported by the Croatian Financial Services Supervisory Agency,” Popović noted.
Bojović has identified a few technical adjustments that he intends to coordinate with the Ministry of Finance.
Proposal for the Law on Amendments to the Law on Pension and Disability Insurance
Mersida Aljićević, State Secretary of the Ministry of Social Welfare, reiterated that the purpose of these amendments is to better the status of those receiving proportional pensions in accordance with international social security agreements.
“Thus, it is suggested to implement the payment of the difference for those whose proportional pension amounts are less than 450 euros. The changes in the Law on Contributions for Mandatory Social Insurance have reduced the contribution rate for employees from 15 percent to 10 percent and eliminated employer contributions, leading to a proposal for lowering extended insurance contributions for those insured under Article 66 of the Law,” Aljićević added.
In accordance with the Constitution and
Bojović reiterated the need for a justification regarding the immediate enforcement of this law upon its publication, with Aljićević citing urgency and delays in receiving benefits as significant concerns for pensioners.
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