Ministry of Finance: Amendments to the Pension and Disability Insurance Law Adopted

On its session held on Wednesday 22nd December 2010, the Parliament of Montenegro has adopted the Amendments to the Law on Pension and Disability Insurance, that represents the continuation of the pension system reforms, whereas the main objective of Amendments is to provide long – term stability of this system, i.e., to create conditions that each pensioner receives its pension in a timely manner.

The adopted amendments are developing and providing the long – term pension system stability and sustainability, and the new legal solutions are focused on increasing the number active population.

New solutions are envisaging the gradual increase in retirement age to 67 years for both men and women (instead of current 65 years for men and 60 years for women) and the new pension adjustment formula, which will be based on the changes in CPI and total wages, the ratio which is 75:25 against inflation, while this ratio was 50:50 based on the former legal solution. The Proposal of the Law has improved the status of children beneficiaries of survivors pensions pursuant to the EU current practice governing this area.

By adopting the Law, Montenegro succeeded, to the greatest extent, in implementing measures being adopted and implemented by the most developed EU member states, with the overall objective of provisioning the security for the disability and pension insurance beneficiaries.

Adopted Amendments to the Law on Pension and Disability Insurance represent the reflection of accountability to future and future generations, simultaneously representing one of the most important structural reform being defined by the Government’s policies.

PR Unit of the Ministry of Finance

tel: +382 20 242 835; fax: +382 20 224 450; e-mail: mf@gov.me