The public debate on the Draft Amendments to the Law on Pension and Disability Insurance must be postponed for a period of three to six months in order to consider in detail all the important issues related to that topic and possibly find alternative solutions.
Yesterday, the participants of the round table, where the law was discussed, asked the Government's working group.
- We believe that this is the worst chosen moment for the reform of this important area, due to the current economic crisis. In addition, it is necessary to postpone the public discussion in order to verify some data that do not match the data presented to us by the working group. We received information that contributions are paid for 135.000 employees, and from Monstat we received information that 170.000 people are employed in Montenegro. That should be checked. You say that the pension system is unsustainable, so why did we do the reform a few years ago. You also kept silent about the introduction of state pensions - said the general secretary of the Union of Free Trade Unions of Montenegro, Srđa Keković, adding that their data on retirement in EU countries do not match that presented by the working group.
Keković asked why the authorities do not deal with illegal work, why they do not conduct a transparent fiscal policy and check whether profit tax is paid, why they do not improve the collection of contributions, why they do not initiate a proactive policy of job creation, why property obtained from crime was not confiscated...
- The Union wants this reform to be carried out together with competent experts and the lay public and that the discussion lasts at least half a year, as was the case in Croatia, in order to have enough time to reach what suits everyone in Montenegro - said Keković. .
The Association of Pensioners also believes that a short deadline has been set for the public debate on the draft law, which does not follow the explanation of the norms being introduced.
- It is necessary to extend the public debate in order to familiarize the public with the proposed changes in detail, and it is necessary to prepare the text of the explanation - said the representative of the Association of Pensioners Milo Đurović.
The Association does not support the new solution, which stipulates that pensions are adjusted once a year based on the movement of the price index, because it may happen that pensions are reduced on that basis.
- It is unclear what is meant by consumer prices, that is, which goods and services they are. We ask that the pensions be adjusted twice or that an average amount be determined below which the pension cannot go. Pensioners are concerned about the fact that the payment of pensions is treated as a benefit. It's not giving, but paying back the debt, because for years we allocated money for contributions - said Đurović.
His colleague from the association of military pensioners, Dragan Tiodorović, believes that it is problematic that the deadline for the payment of money owed by the state to military pensioners, to which they are entitled based on adjustment, is extended for an additional three years.
The General Secretary of the Union of Trade Unions of Montenegro, Zoran Masoničić, said that he is moving forward with the new reform, and even according to the old law, it is not finished.
- We have to think about what the new calculation of pensions brings. Pensions will make up 40 percent of average earnings, and that's not good. This story requires a detailed analysis of numerous laws, and therefore it is necessary to extend the deadlines for the public debate in order to receive additional arguments on the proposed solutions - Masoničić assessed.
From the Montenegro Business Alliance, they proposed that the solution for the 25 years of minimum required service for retirement should be reduced to 20 years.
The representatives of the Government at the round table mostly repeated the positions expressed earlier regarding the proposed amendments brought by the draft law.
Assistant Minister of Finance Milorad Katnić said that the challenges facing the pension system are negative demographic trends, low activity on the labor market and financial sustainability of the system in the long term.
He reiterated that the basic solution of the draft law is to increase the retirement age for men by two years or from 65 in 2013 to 67 in 2017, the age for women from 60 in 2013 to 67 in 2023, as well as increasing the limit of working hours from 15 to 25 years.
- A person who achieves 40 years of insurance can retire regardless of age, and can continue working until the age limit is met. The conditions for obtaining a family pension have also been changed, so instead of 15, children have an unconditional right to a pension until the age of 19, and the minimum age for widows and widowers is increased from 50 to 55 years - repeated Katnić.
He added that "the activity rate of the population aged 15 to 65 is 59,6 percent in Montenegro, while in the EU it is 70,9 percent."
According to Katnić, according to some parameters, Montenegro is ahead of some EU countries, and the pension reform, as he said, will make it possible to reduce these differences.
- What is important is that all changes will be introduced continuously and gradually and that they will not imply radical solutions but phased changes - believes Katnić.
Expenditures for pensions increased to 10,8 GDP
Assistant Minister of Finance Nemanja Pavličić said that pension expenditures from 2003 to 2011 increased from 8,71 to 10,82 percent of GDP, that is, from 131,4 million euros to 343 million euros.
- The deficit of the pension system in GDP in 2010 was 132,3 million euros or 4,38 percent. Income from contributions has doubled since 2003 and tax collection is good, but pension expenses have increased 2,5 times due to the unfavorable number of employees and pensioners - said Pavličić, adding that it is necessary to employ 60.000 people for the PIO Fund to function. .
The General Secretary of the Union of Trade Unions, Srđa Keković, asked why the authorities do not deal with illegal work, why a transparent fiscal policy is not conducted and whether profit tax is paid, why the collection of contributions is not improved, why a proactive policy is not initiated job creation, why the property obtained from crime was not confiscated...
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