The Pension Insurance Law New changes
The new changes to the Pension insurance law will give professional soldiers the right to retire under the same conditions as officers and non-commissioned officers. Also, additional years of service will help pensioners increase their pensions. Moreover, new rights will appear for farmers.
According to amendments to the Law on Pension and Disability Insurance, professional contract soldiers will get an old-age pension after completing 40 years of pensionable service and reaching at least 53 years of age. It will bring their status into line with that of other members of the professional armed forces.
Also, new amendments will include the right to attendance allowance and care assistance into the insured risks covered by the pension and disability insurance system for the first time.
As for pensioners who continue working after retirement, recipients of old-age and early retirement pensions who accumulate at least one additional year of pensionable service after retiring will be able to apply for a recalculation of their pension.
A new, more favorable pension amount, will be calculated by the Pension and Disability Insurance Fund (PIO Fund) in such cases. The additional period of service completed will be the basis of this new pension amount.
Farmers will be also affected by some amendments. For example, holders of family agricultural holdings who pay income tax on self-employed activities or value-added tax (VAT) will get mandatory insurance coverage in the future.
However, there will be the possibility of suspending insured status in cases of natural disasters, illness or maternity leave.
New categories of insured persons are also in the draft law. They are employees working for foreign employers that do not have a registered representative office in Serbia. The condition is application of Serbian regulations to them in accordance with the rules governing the coordination of social security systems.
According to the proposed amendments, people acquire old-age and early retirement pensions only after insurance coverage has ceased. Nevertheless, there are certain exceptions for specific categories of insured persons and individuals. Their most recent insurance coverage should be in countries with which Serbia has concluded social security agreements.
Reimbursement of funeral expenses is also among the changes. According to the proposal, persons who bear the costs of burying beneficiaries of certain disability-related benefits and residual work-capacity benefits will get it.
They expect most provisions of the law to enter into force on the eighth day following publication in the Republic of Serbia’s Official Gazette. Nevertheless, it will be possible to apply for provisions relating to harmonization with European Union rules only after Serbia joins the EU.
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