In an interview with Pobjeda, Vladimir Drobnjak, the acting director of the Pension and Disability Insurance Fund (PIO), discussed how the proposed fiscal strategy will affect the Fund. Despite the planned reduction in pension contributions by 180 to 200 million euros, Drobnjak assured that pension payments will remain regular and unchanged.
According to Drobnjak, the fiscal strategy includes a significant cut in pension contributions—from 15% to 10% for employees and the elimination of a 5.5% contribution from employers. This reduction will significantly impact the Fund’s primary source of revenue. However, the government plans to counterbalance this loss through increased gross calculation bases, such as raising the minimum wage and adjusting wages based on educational qualifications, reducing the informal economy and boosting employment and wages.
Drobnjak confirmed that pension payments will continue as usual, with no changes in the payment schedule or method. Payments will be made on the 20th of each month for the previous month, and adjustments will follow current regulations based on average wages and consumer price changes.
The Fund is also working on modernizing its services, with plans to introduce five new electronic services. These include online reviews of contribution payments, calculations of future pensions, tracking administrative processes, and providing transparency through electronic payment statements. These changes aim to enhance efficiency and transparency in service delivery.
Regarding the Fund’s current financial situation, Drobnjak reported a deficit of 112.2 million euros for the first half of 2024. This deficit is primarily due to legal changes increasing minimum pensions. The Fund expects this level of deficit to continue through the end of the year.
Looking forward, the Fund aims to improve service quality, develop human resources, increase internal efficiency, and enhance transparency. It also plans to strengthen its communication and collaboration with pensioner associations, despite recent issues with providing financial support to these organizations.
