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Pensioners' rights

Ignoring the citizens cost the PIO fund almost a billion dinars

10 August 2024, 15:13 SZ
Photo: Website of the Republic Fund for Pension and Disability Insurance
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For years, as a result of not responding to citizens' requests on time, the PIO Fund was sued for the so-called "silence of the administration" - and as a result suffered damages of around 911 million dinars

Lack of promptness and negligence in the work of the Republic Fund for Pension and Disability Insurance (RFPIO) when it comes to the demands of the parties to exercise their rights has led to a great loss for this fund.

Namely, for years, due to failure to respond on time to citizens' requests, the Fund was sued for the so-called - and as a result suffered damages of around 911 million dinars, it says. The new economy.

The number of administrative disputes due to the silence of the administration increased 2012 times from 1.000 to today, that is, from only 55 disputes in 2012 to about 50.000 disputes in 2023, as a result of which the PIO fund has a loss of about one billion dinars, stated the Council for the fight against corruption in its latest report.

The reasons for the increase in the number of legal disputes based on the silence of the administration are multiple.

As explained in the document that the Council handed over to the Government of Serbia, the PIO fund had all the documentation or files of the parties that duly submitted a request for realization of some of the rights from pension and disability insurance.

However, the Fund did not issue decisions within the legally prescribed time frame to decide on the requests of the parties, but did so later - only after the party dissatisfied with the Fund's inaction filed a lawsuit with the Administrative Court due to the so-called "silence of the administration".

The number of disputes grew from year to year

The number of disputes concluded in this way grew from year to year.

Thus, in 2022, out of a total of 8.672 resolved cases in disputes due to the silence of the administration, in 5.403 a decision was made to suspend the proceedings, and in 2023, out of 11.473 resolved cases in disputes due to the silence of the administration, a decision was made in 5.955.

The document also states that conscientious employees of the Fund warned the management of the Fund about illegal occurrences, especially since 2018 and 2019, when the growth of administrative disputes drastically increased due to the silence of the management against the Fund Directorate.

"It is obvious that the management of the RFPIO did not take actions to prevent the abuses that were warned about," stated the Council for the fight against corruption.

The work and functioning of the Administrative Court are, as the Council claims, hampered due to the enormous number of cases in which the PIO Republic Fund is the defendant, and the total material damage suffered by the PIO by compensating the plaintiffs for the costs of the proceedings regarding the lost administrative disputes on all grounds reached in the period from 2019. until September 30, 2023, amounting to 1,6 billion dinars, excluding enforcement costs and statutory default interest.

The Council for the fight against corruption emphasized that it is necessary to determine the financial responsibility of the employees of RFPIO.

It was proposed to the Government of Serbia to order the Ministry of Labour, Employment, Veterans and Social Affairs, given that the Supervisory Board of the RFPIO was abolished, to supervise the legality of the work of the RFPIO and its failure to act, which resulted in a huge number of lawsuits based on the silence of the administration.

It was also proposed that the Management Board of the RFPIO, whose majority consists of members chosen by the Government of Serbia, determine when adopting the work report and the report on the financial operations of the RFPIO whether there is responsibility of the directors and management of that fund for misconduct and illegality in work as a reason for filing lawsuits due to the silence of the administration and their costs, as well as the total costs of all types of administrative disputes.

Who is Relja Ognjenović and why did he run for director of the PIO fund?

Relja Ognjenović was the deputy director of the PIO fund, after which he became the director.

The 33-year-old director Relja Ognjenović gained his first work experience in 2011 by visiting the field. As an enumerator. The director of the PIO fund is one of the most prominent operatives in the field of the Serbian Progressive Party (SNS).

He became known to the public when he was elected as a member of the Voždovac Municipality Traffic Council, despite the fact that his professional training (physiotherapist) had no contact points with the aforementioned job.

He was appointed to that position in 2014, when he was 24 years old, and as an explanation for this decision, the municipality of Voždovac stated that he had experience as an enumerator in 2011 and that he had two three-month internships in a special rehabilitation hospital and the Institute for Protection MUP employee.

Soon after that, Ognjenović became a member of the Voždovac municipality council, and in 2015 he earned the title of "graduated economist" by graduating from the University of Business Economics and Entrepreneurship.

Source: New economy

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PIO fund Relja Ognjanović
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