In Serbia, according to recent data from the PIO Fund from March this year, there are 134,037 citizens receiving agricultural pensions. This makes 1.8% of the total number of pensioners. The average monthly income of agricultural pensioners is 19,785 dinars, which ranks them among the lowest pensions paid out by this fund.
One of the main reasons for the low income of agricultural pensioners is the insufficient number of insured persons, of whom there are 93,117, compared to the number of pension beneficiaries. Another problem is that most agricultural insurers pay contributions on the lowest basis, and delays in the payment of contributions are common. Because of this, the debt of farmers to the PIO fund, including accrued interest, exceeded two billion euros.
There is currently no solution to this problem, although efforts are being made to find a way to solve it. The data show that the current insurance model is unsustainable, because the payment of agricultural pensions requires more than 30 billion dinars annually, of which 28 billion is paid from the budget. A few years ago, the state authorities, with the help of experts from the World Bank, decided to completely reform the PIO system for farmers.
Although changes to the Law on Pension and Disability Insurance in the agricultural sector have been announced, there have been no significant changes so far. The problem is the inconsistency of the criteria for payment of contributions, because the current legal criteria are the same for those who cultivate small areas of land and for those who cultivate hundreds of hectares.
Pensions, in more detail
One of the possibilities that was considered was the introduction of a proportional contribution system, according to the size of the economic holding, but that idea was abandoned. Pension insurance for farmers in Serbia has never been established in the way it works for workers, where contributions are regularly paid by employers. The situation is similar in some countries of the region and the EU, where farmers are excluded from the system of mandatory contributions, allowing them to pay contributions on a voluntary basis, and if they do pay them, they are given access to the social protection system.
The Ministry of Rural Care has been working for years on the introduction of guaranteed pensions for those who have reached the age of 65 and have no right to a pension or other sources of income. The plan is to create a fund for social pensions, they point out. The respective pensions would also include farmers, which would ensure the conditions for protecting the dignity of older citizens. Currently, social pensions exist in about 100 countries, where they serve to protect the dignity and personal integrity of senior citizens.
The issue of PIO insurance for farmers is complex. It will not be easy to reach a final solution, especially the issue of outstanding debts to the PIO fund. State authorities plan to put this issue on the negotiating table soon. Finally, one important fact should be taken into account. As state authorities point out, the point is that the number of farmers is decreasing, and most small producers are not able to regularly pay their obligations to the PIO fund. Therefore, this issue will have to be approached carefully in order to find a sustainable solution for all.
Source: AgroTV
Source: boljazemlja.com
