REFORMA PENZIJSKOG I INVALIDSKOG SISTEMA U BOSNI I HERCEGOVINI / REFORM OF PENSION AND DISABILITY SYSTEM IN BOSNIA AND HERZEGOVINA

Abstract

The system of pension and disability insurance of Bosnia and Herzegovina is regulated on the entity level by the Law on Pension and Disability Insurance. This Law represents initial amandments of pension and disability insurance in Bosnia and Herzegovina. This Law and its amendments, carried out a significant reform and restriction of the pension and disability insurance right. Any reform is long-term, complex and comprehensive process that requires active involvement of all relevant stakeholders, and general social consensus as an important prerequisite for the successful implementation of the same. Pension funds in BiH are in a quite difficult situation. Pensions for years do not arrive to its users on the first day of the month. There is tendency of pension system collapse of it used for solving social issues. Creation of stable pension system is not a concern of only current users of pension rights but also those who will gain that right in ten or twenty years. Solving this problem should be approached responsibly in order to satisfy a wide range of interest groups. Defining the future optimal model of the pension system in BiH is not easy due to a many restrictions that resulted from global economic crisis, and a complex economic and political-territorial organization of BiH. Many problems have a negative impact on the pension system of all countries, including Bosnia and Herzegovina. Among the most prominent problems are unfavorable ratio of insured persons and pensioners, as a result of the "gray economy " and a large number of unemployed but active labour force. One of possible solution for these problems would be introducing a new model of pension - insurance system with three pillars.