The government rejected the proposal of the URA: First, an analysis, then an increase in proportionate pensions

The government rejected the URA's proposal regarding changes to the Law on PIO because there is no calculation of how much it would cost

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Photo: Facebook
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Government believes that the amendments to the Law on Pension and Disability Insurance (PIO) submitted to the parliamentary procedure by the members of the Citizens' Movement URA should not be accepted, because in that proposal there is no fiscal analysis for increasing proportional pensions to 450 euros, which would significantly burden pension system.

This was stated in the Government's opinion on changes to this law, which were requested by the URA in the middle of last month. This party, URA, proposed that from the beginning of the next year, proportionate pensioners receive 450 euros in the total amount per beneficiary.

"By accepting the proposed amendment to the law, without a previous fiscal analysis that would include the exact and precise number of beneficiaries of proportional pensions paid by the PIO Fund in Montenegro in the total amount of up to 450 euros, as well as data on the total amount of pensions earned in Montenegro and in the countries with which Montenegro "Gora applies bilateral agreements on social security, there would be a significant burden on the pension system, which would affect the stability and sustainability of the budget financing of rights from PIO," the government's opinion reads, adding that they are preparing this analysis.

Prime Minister Milojko Spajic and Minister of Labor and Social Welfare Naida Nišić have recently announced that starting next year at the latest, those with proportionate pensions will receive a minimum amount of 450 euros. Spajić pointed out that Montenegro did not have all the data on these pensioners due to unsigned agreements with the countries of the region, so those with commensurate pensions were not initially included in the increase. He pointed out that after the signing of bilateral agreements, they will have complete data on how many pensions citizens receive from those areas, after which Montenegro would pay the difference of up to 450 euros. Nišić pointed out that according to estimates, these pensioners who receive less than 450 euros are from 3.500 to 4.000.

"Vijesti" expects answers from the Government, what will be the cost to the state coffers by increasing proportional pensions in 2025.

Proportionate pensioners are those who completed part of their working experience in Montenegro, and part in other countries, mostly former Yugoslav republics. They receive part of their pension from Montenegro, and the other part or parts from other countries in proportion to their length of service. Nišić recently said that there are a total of 13.000 to 14.000 of these pensioners in the country.

The Government's opinion also states that the law stipulates that the lowest pension in the nominal amount does not belong to proportionate pensioners who have achieved the right to it through the application of international agreements, because in the majority of cases it is about pensions with a short period of insurance, which is not enough to acquire the right to age. They point out that in order to fulfill the conditions, insurance experience is taken in the country with which Montenegro has concluded an international agreement, i.e. with which it has signed a bilateral agreement on social insurance.

In the document, it is also written that the corresponding pensioners can exercise the right to a pension with a foreign holder, based on the length of insurance for which PIO contributions were paid, by fulfilling the conditions for a pension according to the regulations of the contracting state. In addition, it is stated that the Working Group of the Ministry of Labor and Social Welfare is working on the preparation of the analysis, i.e. obtaining data on the amount of pensions that proportionate pensioners receive from the countries with which Montenegro has concluded an agreement on social security, after which a decision will be made on this issue.

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