February, 2008.

UPDATES

 

Initiative for the introduction of social pensions

The biggest part of the poor in Serbia are the elderly. In order to target this problem, the HumanaS network of organizations that work for and with the elderly, is initiating the campaign for introduction of social pensions as a mechanism for combating poverty of population older than 65 years, that do not have any personal income.

To address this situation, in a systematic and targeted way that engages both statutory and civil society sectors, Help the Aged has supported the process in providing the expertise of Mr. Asghar Zaidi, Senior Economist at the Social Policy Division of OECD in Paris and expert on pension reforms and their implications. Together with the representatives of HumanaS network, Mr. Zaidi has met the most relevant representatives of the governmental institutions such as Ministry of labor and social policy, Team of implementation of Strategy for poverty reduction within the Vice Prime minister’s office, Council for the aging etc.

Civil society organizations in Serbia are advocating for introduction of social pensions covered from the state budget, for all citizens older than 65 years who do not have any income.

Ms. Ljiljana Lučić, State secretary in the Ministry of Labor and Social policy, has supported these proposals and emphasized that the Government would be willing to explore the possibility of introducing social pensions providing the more in-depth analysis is priory done.

In addition, the Organizations of civil society in Serbia are proposing to reduce the number of years of pension insurance necessary for acquiring the right for pension, from 15 to 10 years of pension insurance contribution. Assistant to the Minister, Ms. Ljiljana Radifković, has said that the Ministry would be very cooperative in this matter; however she has emphasized the need for detailed analysis of number of potential beneficiaries of such pensions as well as estimation of the funds necessary.

Members of the Team for implementation of Poverty Reduction Strategy have expressed their commitment to propose introduction of measures that would target the most vulnerable groups in order to mitigate the poverty, therefore the elderly as one of the groups most prone to the poverty risk.

As all participants of the discussions agreed, on the long run, the number of beneficiaries of social pensions is projected to fall, if the sustainability of the pension system would grow (based on the better coverage rate), and the employment rate would increase, so there would be decrease of number of individuals without any coverage.

Organizations of civil society will in the coming period prepare the needs assessment as well as baseline study of the conditions for introduction of social pensions, and present it to the relevant state bodies in order to continue lobbing for the introduction of this instrument in the Serbian system.

 

From the training on introduction of social pensions for the members of HumanaS Network

 

 

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