Podgorica, (MINA-BUSINESS) – The Pension and Disability Insurance Fund does not have the legal authority to arbitrarily change, increase, or reduce the pension indexation percentage, as this is a direct mathematical result of data provided by Monstat.

The PIO Fund implements laws; it does not draft them,” the Fund stated in a press release, responding to recent media reports and differing interpretations of the January pension indexation of 0.38 percent. 

As explained, the PIO Fund is an executive body responsible for implementing the Pension and Disability Insurance Law. 

Pursuant to Article 58 of that law, pension indexation is carried out based on official statistical data from Monstat.

“Indexation is performed according to a ‘rotating’ formula that takes into account two key parameters: the increase or decrease in consumer prices, i.e. inflation, and the increase or decrease in average wages,” the press release specified.

According to the Fund, the January pension increase of 0.38 percent is a direct mathematical consequence of these parameters in the previously observed period.