Q:
A:
Pension indexation to be preformed at least once a year
Belgrade,
31 August 2005
The Serbian government’s Social-Economic Council has agreed that as of January 2006, the indexation of pensions will be performed at least once a year as well as each time inflation exceeds 5 percent.
Author:
Beta
The government is expected to discuss the proposal tomorrow as part of the adoption of a bill on changes and amendments to the Law on pension and disability insurance.
Government representatives to the Council – ministers Mladjan Dinkic, Slobodan Lalovic, Predrag Bubalo, and Velimir Ilic – accepted the proposal concerning the indexation of pensions, which was jointly put forward by two labour unions and the Serbian employers’ association.
Minister of Finance Mladjan Dinkic explained that pensions in 2005 will be indexed according to the existing legislation but that in 2006 they will be indexed 50 percent according to the cost of living and 50 percent according to increases in wages – which is in line with the Swiss model.
The Swiss formula will be phased out as of January 2006, when the indexation will gradually start shifting to the cost of living only, and this process will be completed by 2009, according to Dinkic.
On the issue of raising the mandatory retirement age, unions suggested that the retirement age for men should be raised to 65 years and for women to 60 years and that this model should be implemented as of 2015.
The government representatives retained the stance outlined in the bill, which envisages the raising of the retirement age to 65 and 60 as of 2011.
Government representatives to the Council – ministers Mladjan Dinkic, Slobodan Lalovic, Predrag Bubalo, and Velimir Ilic – accepted the proposal concerning the indexation of pensions, which was jointly put forward by two labour unions and the Serbian employers’ association.
Minister of Finance Mladjan Dinkic explained that pensions in 2005 will be indexed according to the existing legislation but that in 2006 they will be indexed 50 percent according to the cost of living and 50 percent according to increases in wages – which is in line with the Swiss model.
The Swiss formula will be phased out as of January 2006, when the indexation will gradually start shifting to the cost of living only, and this process will be completed by 2009, according to Dinkic.
On the issue of raising the mandatory retirement age, unions suggested that the retirement age for men should be raised to 65 years and for women to 60 years and that this model should be implemented as of 2015.
The government representatives retained the stance outlined in the bill, which envisages the raising of the retirement age to 65 and 60 as of 2011.
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