President Jakov Milatović has expressed concern over the proposed changes to the pension contribution redistribution system, suggesting that the new approach will reduce the annual personal coefficient for the majority of employees in Montenegro. This adjustment, he argues, will lead to lower future pensions for most current workers.
Milatović has questioned the government’s rationale behind reducing pensions for future retirees and has called for an official clarification on the matter.
He emphasized that the system of intergenerational solidarity is a delicate and complex economic-social mechanism. Any modifications to this system, especially if not well-considered, could have significant and unpredictable consequences for future pensioners. Milatović pointed out that the annual personal coefficient, which is a crucial factor in determining pension amounts, reflects the ratio of an individual’s salary to the average salary (in gross terms).
