Professional service of the PIO Fund: We calculate pensions in accordance with prescribed legal norms

"The method of calculation is prescribed by the Law on Pension and Disability Insurance, which has been in force since 2004 and has not changed, so there are no claims that the Fund has changed the method of calculating pensions in 2024 compared to 2023."

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Illustration, Photo: Luka Zeković
Illustration, Photo: Luka Zeković
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The PIO Fund's expert service reacted to the article "Part of pensioners who received decisions in 2024 have been canceled," published on Saturday (January 11) on the Vijesti portal.

We transmit their response in full:

"The mentioned text deals with the topic of the lowest pensions in a way that does not correspond to the factual situation, creating the impression that the Fund does not calculate pensions in accordance with the prescribed legal norms, but on the basis of a free interpretation of those norms. In this way, the public gets the impression that the beneficiaries of the lowest pensions do not exercise the right under conditions and in accordance with the Law, which does not correspond to the actual situation.

Namely, insured persons who are entitled to a pension, and whose amount of the calculated pension is less than the lowest pension amount, are determined the lowest pension. This is in accordance with the provisions of the Law on Pension and Disability Insurance, which was valid before, and according to which all insured persons whose pension amount is below the minimum amount prescribed by law are recognized as entitled to the lowest pension.

The calculation method is prescribed by the Law on Pension and Disability Insurance, which has been in force since 2004 and has not changed, so there is no basis for the statement that the Fund changed the method of calculating pensions in 2024 compared to 2023. We emphasize that the Fund acts strictly in accordance with the provisions of the Law and makes decisions exclusively by applying the applicable legal provisions.

Amendments to the Law dated 1.1.2024. in which the amount of the lowest pension was significantly increased and its value was determined in the nominal amount of 450 euros, it was prescribed that the lowest pension will not be adjusted in 2024 and 2025. The above means that this provision applies to all users of the lowest pensions, including those who exercise their right to a pension after January 1, 2024. Therefore, the amount of the lowest pension remains fixed in the specified two-year period, regardless of the regular adjustment of pensions in that time frame.

This ensures the consistent application of legal provisions, whereby all beneficiaries are entitled to the lowest amount of pension under equal conditions.

However, it is necessary to draw attention to the group of users whose pension amount on 1.9.2023. was higher than the then lowest pension amount, which was 296,35 euros, and less than 450 euros. This group of beneficiaries will continue to have their pension adjusted, given that they were not receiving the lowest pension at that time, so according to the aforementioned amendments to the Law, they have the right to pay the difference of up to 450 euros, until the adjustment brings their pension to the specified amount.

Bearing in mind all of the above, as well as the possibility that the legal solutions in question may cause doubts among the beneficiaries of the rights, we invite the parties to contact the competent regional units of the Fund for additional clarifications regarding their rights.

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