Fiscal Council proposes withdrawal of amendments to Law on Pension and Disability Insurance

The Fiscal Council gave a negative assessment to the proposed amendments today. The amendments envisage the abolition of the law on the temporary reduction of pensions and of the formula for the harmonization of pensions and provide the Government with the discretionary option of paying a “monetary increase” along with the pension.

The abolition of the said formula would jeopardize the predictability which characterizes European pension systems, whereby the pension system of Serbia would get degraded to the level of the least stable systems in the countries of north Africa and the Middle east, the Fiscal Council says in its assessment of the draft law on the amendments to the law on pension and disability insurance, sent by this independent body to the National Assembly of Serbia.

The Council estimated that the said discretionary right that would be given to the Government would not be in line with the principles of pension insurance and that it would violate the principles of responsible social policy.

The Fiscal Council proposes that the Government of Serbia withdraw the amendments so that it wouldn't jeopardize one of the key economic and social systems in Serbia, Beta reports.

Fiskalni savet Republike Srbije

Vlada Republike Srbije

Fiscal Council

Government of Serbia

abolition of the law on the temporary reduction of pensions

abolition of the formula for the harmonization of pensions

Law on Pension and Disability Insurance

pension

pensions

pension increase