Current reform of the pension system in the Federation of Bosnia and Herzegovina: what does the newly adopted Pension and Disability Insurance Act bring? Cover Image

Aktualna reforma penzijskog sistema u Federaciji Bosne i Hercegovine: šta donosi novi Zakon o penzijskom i invalidskom osiguranju?
Current reform of the pension system in the Federation of Bosnia and Herzegovina: what does the newly adopted Pension and Disability Insurance Act bring?

Author(s): Specified No Author
Subject(s): Constitutional Law, Public Law, Welfare systems, Evaluation research, Fiscal Politics / Budgeting
Published by: Fondacija Centar za javno pravo
Keywords: pension; insurance; FBiH; law; discrimination; evaluation;

Summary/Abstract: The application of the earlier Pension and Disability Insurance Act caused constant losses that resulted in a high deficit in the Pension and Disability Insurance Institute. This finally raised serious questions about the pension system solvency in FB&H, pension adequacy and regular pension payments. In addition, bad economic and demographic situation, decline in working-age population, emigration of the young working class population etc. are just some of the reasons that also indicated the need for pension system reform in FB&H. This paper deals with the current reform of the pension system in FB&H through the analysis of the recently adopted Pension and Disability Insurance Act and the novelties introduced by it. Special emphasis is given to the provisions containing the elements of unlawful discrimination as well as unconstitutionality. As such, these provisions are contrary to the European and regional trends, the international conventions and to the Constitution of FB&H. As an obvious example of unlawful discrimination the paper particularly stresses the provision denying unmarried partners’ access to the survivor's pension. Also, the provision suspending the pension payments to one group of pensioners represents a violation of the right to property guaranteed by the FB&H Constitution and as such could be used as the basis for initiating a procedure for assessing its constitutionality. The analysis of the disputed provisions of the Pension and Disability Insurance Act points to their discriminatory and unconstitutional character and to the need for their amendment in order for FB&H to follow the European path and comply with the constitutionally accepted obligations with regard to the international conventions.

  • Issue Year: 9/2018
  • Issue No: 33
  • Page Range: 61-69
  • Page Count: 9
  • Language: Bosnian