Deputy PM: Pension increase can wait till 2010
Deputy PM Jovan Krkobabić says that the planned pension increases will have to wait until late 2010 because of the international financial crisis.
Tuesday, 28.10.2008.
17:09
Deputy PM Jovan Krkobabic says that the planned pension increases will have to wait until late 2010 because of the international financial crisis. “Our projection was for pensions to be 70 percent of the average wage by the end of 2009, and that would certainly have worked if it was not for the international crisis,” Krkobabic told the Beta news agency. Deputy PM: Pension increase can wait till 2010 Krkobabic said that there would be less taken out of the 2009 budget for pensions if a new system was introduced for pensions to increase to 65 percent of the average wage next year, and to harmonize the pensions exclusively with increases in wages. He said that if the correction stayed at 65 percent throughout 2009, EUR 24mn less would be needed for pensions that year and only EUR 15mn more in 2010. “The new variation harmonizes pensions with wage increases, which would work well for the country, and help it weather the economic crisis because salary cuts in crisis periods and the cost of living increase,” Krkobabic said. He said that this model would be proposed to the government once it passed through the proper procedures. Krkobabic said that he had not discussed the issue of increasing pensions with other ruling coalition officials because “there is no need to agree on what has already been agreed upon.” “The entire projection (increase of pensions) is not anyone’s election promise or personal will or subjective opinion. The projection is the result of a coalition agreement.” Krkobabic said. He also said that more discipline needed to be shown when it came to paying contributions to pension insurance and stopping people working “illegally.” He pointed out that a debt of EUR 892mn had come about as a result of failure to pay pension contributions and EUR 630mn in interest. Krkobabic said that Serbia currently had 1,630,000 pensioners with average pensions of about EUR 206, adding that more than 450,000 pensioners, including more than 200,000 farmers, had pensions under EUR 115. After the increase on November 10, the average pension will be about EUR 226, he said. Krkobabic stated that “pensions are not a social, but an economic issue and a personal, inalienable right.” Jovan Krkobabic (Beta, archive)
Deputy PM: Pension increase can wait till 2010
Krkobabić said that there would be less taken out of the 2009 budget for pensions if a new system was introduced for pensions to increase to 65 percent of the average wage next year, and to harmonize the pensions exclusively with increases in wages.He said that if the correction stayed at 65 percent throughout 2009, EUR 24mn less would be needed for pensions that year and only EUR 15mn more in 2010.
“The new variation harmonizes pensions with wage increases, which would work well for the country, and help it weather the economic crisis because salary cuts in crisis periods and the cost of living increase,” Krkobabić said.
He said that this model would be proposed to the government once it passed through the proper procedures.
Krkobabić said that he had not discussed the issue of increasing pensions with other ruling coalition officials because “there is no need to agree on what has already been agreed upon.”
“The entire projection (increase of pensions) is not anyone’s election promise or personal will or subjective opinion. The projection is the result of a coalition agreement.” Krkobabić said.
He also said that more discipline needed to be shown when it came to paying contributions to pension insurance and stopping people working “illegally.”
He pointed out that a debt of EUR 892mn had come about as a result of failure to pay pension contributions and EUR 630mn in interest.
Krkobabić said that Serbia currently had 1,630,000 pensioners with average pensions of about EUR 206, adding that more than 450,000 pensioners, including more than 200,000 farmers, had pensions under EUR 115.
After the increase on November 10, the average pension will be about EUR 226, he said.
Krkobabić stated that “pensions are not a social, but an economic issue and a personal, inalienable right.”
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