Transcript PENZIJSKI I INVALIDSKI SISTEM U FEDERACIJI BIH

Pension System in Federation
Bosnia and Herzegovina
Nikolina Obradović, Advisor to Minister and Zehra Novo-Omanović,
Assistant to Minister
Sarajevo, 25.02.2009. godine
Pension System in Federation of
Bosnia and Herzegovina
• According to Anex IV of the Dayton Peace Agreement,
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social protection is within competence of entities. In the
Federation of B&H, social protection is within shared
competance between the entity and cantons.
State Ministry of Civil Affairs has coordinating role with
regard to social policy. State agreements on social
protection are signed through this ministry.
Bosnia and Hezegovina has two autonomous systems of
pension and disablility insurance on entity level.
The Main Characteristics of Pension and
Disablity Insurance in the Federation B&H
• Single pillar - Public PAYG system of
defined benefits
• Contribution rate of 23,5% of gross salary
is compulsory for all employed, selfemployed,…
• Article 51 of the Law prevents delays and
accumulation of debt towards pensioners
OVERVIEW OF RIGHTS
Old Age Pension
Disability Pension
Family Pension
Rights guaranted
by Pension and Disablity
Insurance Act
Phisical Disabily
Altered Work Ability
OLD AGE PENSION
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Conditions for old age pension:
65 years of age and minimum 20 years of
contribution payments.
With 40 years of contribution payments
regardless of age.
Exceptionally (until 2015): with 55 years of age
and 30 years of contribution for women, 60
years of age and 35 years of contributions for
man
DISABILITY PENSION
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Granted to a person categorised with I Grade
Disability:
when disabilty is caused by work injury or
profesional illness regardles of years in
insurance;
If disability was caused by out of work injury or
illness, the pension is granted under condition
that beneficiary has covered by pension
insurance at least one third of hers\his work
span (calculated from age of 20 until the day of
disability)
FAMILY (survivor’s) PENSION
Widow, widower and children have right to family
pension under one of the following conditions:
• 45 years of age for women or 60 years of age
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for man reached before death of spose
If within a year after death of spose, he \ she
becomes unfit for work
If she or he is guardian to children that have
right to family pension.
Children have right on family pension until age
of 15, or if attending full time school until age of
25
MAIN PENSION INDICATORS
Number of employed
430.745
Number of unemployed
Activ population (employed
and unemployed)
345.346
Participation rate (LFPR)
Pension coverage of activ
population
Dependency rate
776.091
49,1%
55,5%
1,25
Average salary (Euros)
405,1
Average pension (Euros)
178,3
Replacement rate
0,44
THE MAIN PROBLEMS:
• Low coverage due to grey economy,
contribution evasion and miopia
• 51% of pensioners receive minimal
pension of 156 Euros
• Special legislation for war veterans and
some other chategories
• Low efective pensionable age
• Low GDP, population aging, etc.
Any questions?