If retirement is 2 or 5 years away, expect the following changes

Pensioners’ Republic Fund for Pension and Disability Insurance, Photo: Petar Markovic

Workers of companies in restructuring who left their jobs social program two or five years until retirement, They will no longer have to pay penalty points on the pensions they have acquired in the meantime and will receive the full amount, it was confirmed by the Ministry of Labor, Employment, Veterans Affairs and Social Affairs.

An agreement was reached on this at the meeting of Line Minister Darija Kisić Tepavčević with the union representatives.

Penalty points were applied to the pensions of former workers who entered one of the programs, two years before retirement or five years before retirement, at the end of 2014.

The option of “five years until retirement”, according to which some 6,300 workers left the company and then retired, guaranteed them when they left the company that when they met the first condition for retirement they would receive the full amount of the pension .

Pensioners’ Republic Fund for Pension and Disability Insurance, Photo: Petar Markovic

However, in the meantime, the Pension and Disability Insurance Law was approved, which introduced that those who acquire only years of service as a condition for a pension, but not age, will have their pensions reduced.

This reduction means the payment of a pension reduction for each month until the retirement age is reached.

By decision of the Government of Serbia in March 2016, this group of pensioners was paid a full pension until October 1, and the problem arose when the technical government reversed that conclusion.

Apart from them, the last agreement also refers to workers who left the company at the end of 2014 at the latest, according to the program known as two years until retirement.