In the second half ofthe year, the Swiss model for pension indexing should be adopted, because it isestimated as the model that is the best and most fair for the elderly citizens,Finance Minister Sinisa Mali announced. “During the next visit of the IMFmission, which is expected at the end of September or early October, we willadopt it,” Mali said in response to journalists’ questions during a breakat the conference on grey economy. He added that in the meantime several othermodels would also be discussed, but that he still expected that “this model(Swiss), as the most just and the best, will be adopted.” He explainedthat the Swiss model implied indexation every year, depending on the inflationrate and the increase in salaries in the economy. “Both of theseindicators are 50% weighted. This is a model that is applied in a large numberof countries and, in my opinion, it is also the most favourable and fair forour elderly citizens, because it is related to two indicators which are thebasic determinants of the amount of pensions,” the minister said. Malipointed out that calculations are currently being done based on that model, buthe said that no agreement had yet been made nor had a final decision beenreached. “If, according to this model, the increase in pensions was aboutfive percent, we would need to allocate in the budget about 27 or 28 billiondinars more for these purposes,” Mali said and pointed out that that was asystemic solution.
Source: N1, Beta