The Association of Retired Military Personnel of Serbia has raised concerns following a report from the Serbian Government’s Anti-Corruption Council, which revealed that the Republic Pension and Disability Insurance Fund (PIO) is experiencing financial losses. The association contends that these losses highlight serious issues in the management of pensioners’ and employees’ funds, pointing to mismanagement and illegal practices.
The association attributes these issues to unconstitutional amendments made to the PIO Law in 2014. These changes eliminated the Fund’s Supervisory Board and reduced the Administrative Board from 21 members, who previously included representatives of pensioners and insured persons, to just seven members with a government majority.
According to the association, this shift has subjected the management of the PIO Fund to political influence, despite it not being a state body. They argue that the lack of an internal control mechanism within the Fund has led to negligence and delays, adversely affecting citizens and pensioners by denying or postponing their legal rights.
The statement also criticizes the politicization and poor staffing decisions within the Fund, which have led to an increase in illegal practices by Fund authorities in administrative procedures where citizens seek to assert their rights.
The association calls for a thorough reform of the Fund, advocating for the restoration of management control to its rightful stakeholders, addressing discrimination against some pensioners, securing additional revenue sources, and reducing reliance on the budget. They also recommend improving oversight of payment contributions to ensure employers are paying based on actual earnings.
In their call to action, the association urges the government to propose amendments to the PIO Law that would reinstate the Supervisory Board and restore majority control to representatives of pensioners’ and employees’ organizations. They argue that this is essential for ensuring transparency and effective oversight of the Fund’s operations.
