The Legislative Committee gave the green light and determined that the amendments to the Law on Pension and Disability Insurance (PIO), through which beneficiaries of proportional pensions will receive a minimum pension of 450 euros, are in accordance with the Constitution and the legal system.
In addition, the Committee also supported the Bill on Voluntary Pension Funds.
MPs will vote on these regulations in plenary.
State Secretary of the Ministry of Social Welfare, Family Care and Demography, Mersida Aljićević, explained that the changes to the PIO will improve the position of those who receive proportional pensions, according to the international agreement on social security.
"In accordance with the above, it is proposed to introduce the payment of the difference to the lowest pension amount to beneficiaries of proportional pensions, if their total proportional pension amount is less than 450 euros. Taking into account the fact that the amendments to the Law on Contributions for Mandatory Social Insurance have changed the contribution rate, that is, the rate for PIO for employees has been reduced from 15 percent to 10 percent, and the contribution at the expense of the employer from 5,5 percent to zero percent, it is also proposed to reduce the contributions for extended insurance paid by insured persons under Article 66 of the Law," Aljijević stated.
The President of the Legislative Committee, Dragan Bojović, said that an explanation is also needed as to why this Law needs to enter into force on the day of its publication in the Official Gazette, with Aljijević saying that the issue is the urgency and the length of the 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, said that the draft Law on Voluntary Pension Funds is being adopted with the aim of fully harmonizing domestic legislation with the European regulatory framework and managing these voluntary funds.
She emphasized that this is one of the conditions for closing the benchmarks in Chapter 9 - Financial Services.
"The proposed law aims to create conditions for the Montenegrin market to become more attractive to domestic and foreign investors and to establish an adequate regulatory framework for the activities of pension fund management companies in accordance with EU regulations. The regulation will not cause costs to the economy unless citizens decide to invest in voluntary funds. The draft law itself was prepared as part of a project and with the support of the Croatian Financial Services Supervisory Agency," Popović stated.
Bojović has a few technical corrections, which he will coordinate with the Ministry of Finance.
Proposal for the Law on Amendments to the Law on Pension and Disability Insurance
State Secretary of the Ministry of Social Welfare Mersida Aljićević
Aljićević stated that the goal of adopting these amendments is to improve the position of those who receive proportional pensions in accordance with the international agreement on social security.
"In accordance with the above, it is proposed to introduce the payment of the difference to the lowest pension amount to beneficiaries of proportional pensions, if their total proportional pension amount is less than 450 euros. Taking into account the fact that the amendments to the Law on Contributions for Mandatory Social Insurance have changed the contribution rate, that is, the rate for PIO for employees has been reduced from 15 percent to 10 percent, and the contribution at the expense of the employer from 5,5 percent to zero percent, it is also proposed to reduce the contributions for extended insurance paid by insured persons under Article 66 of the Law," Aljijević added.
In accordance with the Constitution and
Bojović stated that an explanation is also needed as to why this Law needs to come into force on the day of its publication in the Official Gazette, with Aljijević saying that the issue is the urgency and the length of the waiting period for pensioners.
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