Minister: Changes to pension law necessary

Finance Minister Lazar Krstić said on Thursday that it was "necessary to introduce changes to the Law on Pension Insurance."

Izvor: Tanjug

Friday, 11.07.2014.

12:15

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Minister: Changes to pension law necessary

Amendments should have been passed five or six years ago, but Serbia missed the chance to do that when the pension reforms were pushed through in other countries, Krstić told Tanjug.

According to draft amendments to the Law on Pension Insurance, which was put forward by the Ministry of Labor two days ago, the retirement age for women is raised from 60 to 65, gradually from 2015-2020 by six months, and until 2031 by two months every year.

“In Serbia, women live three years longer than men, but they retire earlier. However, the retirement age should not be changed overnight, but in stages,” Krstić said.

As regards accelerated years of service, the finance minister says that changes are directed at scrapping the privilege for those who objectively do not deserve it.

Penalties for early retirement are a common thing in all countries in western and eastern Europe, and the proposal for Serbia would set it at 4 percent per month until conditions for retirement are met.

This has to be passed, not only because it is a standard, but also because in Serbia almost one third of people retired without fulfilling the requirements, he said.

Krstić noted that there is practically no country in eastern Europe that managed to avoid the same or similar measures during the global economic crisis, from 2008 to 2012.

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