Podgorica, (MINA-BUSINESS) – According to the Pension and Disability Insurance Fund, the 0.95 percent pension adjustment rate for May is the result of applying legally prescribed parameters and available indicators published by the Montenegrin Statistical Office, Monstat, at the time of calculation.

Representatives of the Fund said it is obligated to apply the current Pension and Disability Insurance Law, specifically Article 58, which defines the formula for pension indexation. The Fund cannot deviate from this formula or make decisions that are contrary to the law.

The Fund also stated that its financial situation is stabilizing through increased contribution revenues and that there are clear indicators of a positive trend.

“At the end of last year, the Pension Fund's deficit stood at 55.5 percent. During the first four months of last year, the deficit amounted to 59.5 percent, while in the same period this year it was 49.3 percent,” the Fund said in a press release.

The Fund added that the decline in the deficit points to an improvement in its financial position through higher contribution revenues and may be the result of several factors, including increased economic activity, a reduction in the informal economy, or higher employment levels, all of which contribute to the long-term sustainability of the pension system.

The next pension adjustment is scheduled for September. Funding has been secured through the Fund’s budget, which amounts to €843.37 million this year.