Here is the Montenegrin recipe for reforming the pension system

The pension reform that is planned does not imply the abolition of contributions, nor the shutdown of the PIO Fund, but rather its transformation, which will enable it to acquire an essential function, the Ministry of Finance told Pobjeda. The department headed by Novica Vuković stated that they are looking at the models that would be the most acceptable for Montenegro. For example, yesterday Milojko Spajić did not specify what the announced pension reform entails, but he said that citizens should not fear for their pensions.

“It is an ongoing process, and certainly, in the analysis phase, we look at the models that would be the most acceptable for Montenegro, that is, the model that would put current and future pensioners in a more favorable position. Other speculations that could be heard in the public discourse in the previous days are incorrect and unfounded, because all further necessary steps will be defined by the Fiscal Strategy”, Pobjedi from the Ministry of Finance said.

Prime Minister Spajić stated that the previous payments for the PIO Fund are there and that “they will not run away”. – Pensions will be paid out regularly, as before, without any delays and without any problems – said Spajić in the Government at a press conference, answering questions from journalists.

He also reminded that with the abolition of contributions to the Health Insurance Fund, health services were not abolished. – We have an ever larger budget for the Health Fund – Spajić said. He did not specify how much the contributions to the PIO Fund will be adjusted. – We will see, you will be informed in time, but correction of pension contributions for citizens will not have any effect on their amount pension. Citizens should not worry about that – said Spajić.

The Ministry of Finance stated that the Ministry of Labor and Social Welfare will inform the public in a timely manner about all subsequent activities, within the scope of its competences.

“The government is determined to implement the aforementioned reforms exclusively in the interest of citizens, with full stability of public finances,” said the Ministry of Finance.

They added that this government, just two months after taking office, provided the “biggest increase to pensioners”, when the incomes were raised to 450 euros by the pensioners who received less than that amount.

“Even though the public speculated at the time that debt would be necessary for this, the best denial came with the financing of the increase in pensions from current income. We will continue taking care of the oldest and most vulnerable population precisely on the basis of such decisions”, the Ministry of Finance said.

(Source: Investor)