Social Insurance Funds in our Country

Each of the social insurance sub systems in Serbia (retirement and disability insurance, health insurance and unemployment insurance) is regulated by separate laws. The financial means from the stated areas are provided by contribution collecting and from the budget. Since 2004, basic institute for compulsory social insurance has been regulated in a unique way again. The insured from each of the three stated forms of compulsory social insurance are the employed, employers, entrepreneurs and farmers who are not under obligation for the compulsory unemployment insurance. The lowest monthly contribution basis is 40% of an average salary in the Republic paid in the former quarter. The highest monthly contribution basis amounts to five average salaries per employee in the Republic. Since January 1st 2008 there is a Republic fund for retirement and disability insurance, and financing is performed, until January 1st 2011, through three sub accounts: the insured who are employed, independent activities and farmers, and after the mentioned date through one account. The basic role of the retirement and disability insurance system is to provide material and social security in cases of old-age, disability and death for the insured and members of their families. The retirement and disability insurance system, besides being compulsory (with a new possibility of optional insurance), reciprocal and joint, is based on the principle of providing consistent coverage of all rights by means under the market economic conditions, that is to connect the amount of salaries and the length and the extent of investments. The rights provided by retirement and disability insurance are: the right to old age annuity, invalidity pension, family pension, the right to funeral benefit and physical injury. The Republic is obliged to provide means which are missing for each matured pension payment to the funds, while te funds are obliged to pay back for the means by the end of the following calendar year. However, funds are not able to manage this, because the share of contributions in the retirement and disability insurance fund turnover was 55% in 2007, in independent activities fund 80%, and in the farmers fund 20%. When discussing the deficiency in the pension system, we believe that it should not be isolated, but observed as a part of social insurance and public expenses. First of all, we have to consider what rights are stipulated to be financed from the retirement and disability insurance contributions. As for the deficiency, Republic health insurance institute has noted less deficiency comparing to the retirement and disability insurance funds, so in 2005. only 2.8 bill RSD was appropriated from the budget. The expenses pattern of National employment service is monolith, like in cases of all social insurance funds. More than 90% of the total expenses of National employment service are spent for social insurance realisation. Other expenses, except those for the employed, are very moderate.