LAW ON RETIREMENT AND DISABILITY

INSURANCE

of the Republic of Macedonia

Promulgated on

27 December, 1993

Skopje

1. INTRODUCTORY PROVISIONS

Article I

This Law shall regulate mandatory pension and invalid insurance of employees and other physical persons engaged in work, and special requirements by which particular insured categories shall fulfill their pension and invalid insurance rights.

Article 2

Pension and invalid insurance of individuals whose insurance is not mandatory according to this Law, and the insurance of a larger portion of pension and invalid rights of individuals whose insurance is mandatory according to this Law, may be certified as voluntary insurance in

compliance with this Law.

Article 3

Through mandatory pension and invalid insurance based on employment and according to the principle of social equity, the ensuing rights shall be fulfilled in cases of old age, reduction and loss of working ability, death and physical injury.

Article 4

Pension and invalid insurance rights are acquired depending on the length and amount of funds invested in pension and invalid insurance under the conditions set forth in this Law.

Article 5

Rights incurred from pension and invalid insurance shall entail:

1) The right to old age pension;

2) The fight to disability pension;

3) The right to reassignment of employment; the right to corresponding employment- the right to vocational training or improvement of skills; and the right to appropriate money

allowances;

4) The right to family pension;

5) The right to money allowance for physical injury; and

6) The right to the lowest pension level.

Article 6

Rights acquired through pension and invalid insurance are inalienable, personal and material rights, that can not be transferred to other individuals.

Rights acquired through pension and invalid insurance can not become obsolete with the exception of overdue and unpaid pension amounts and other money receipts in instances defined by this Law.

The use of pension and invalid insurance rights acquired in compliance with this Law may terminate or be restricted only in instances and under conditions designated in this Law.

Article 7

Insured parties and employers shall provide the required funds for the fulfillment of rights on pension and invalid insurance.

The State shall provide funds for pension and invalid insurance in instances and under conditions determined in this Law.

Funds required for the fulfillment of pension and invalid insurance rights shall be obtained by insured parties as funds for personal consumption.

A.rticle 8

Funds for pension and invalid insurance and ensuing rights shall be fulfilled and effected by the Pension and Invalid Insurance Fund of Macedonia (hereinafter: Fund)

The status of the fund is that of a legal entity.

The head office of the Fund is located in Skopje.

Article 9

The operation of the Fund shall be of public interest.

Article I 0

Fulfillment of pension and invalid insurance rights shall necessitate a two-sided procedure in the Fund, i.e., with the employer and with the legal protection of rights.

11. INSURED PARTIES

Article I I

Insured parties under mandatory pension and invalid insurance are:

1) Employees of enterprises and other legal entities engaged in

business activities, institutions and other legal entities

employed in public services, in state organs, units of the local self-government and in

domestic and foreign legal

entities (hereinafter: employer)-,

2) Individuals employed in the armed forces of the Republic of Macedonia (soldiers under contract, junior officers, officers and civilians in the Army service);

3) Elected and appointed holders of public and other functions receiving either a salary for that function or other compensation for the performance of that function;

4) Citizens of the Republic of Macedonia employed by foreign and international bodies, organizations and institutions, foreign diplomatic and consular n-tissions or in

the personal service of foreign diplomatic and consular rnissions on the territory of the Republic of Macedonia, unless otherwise designated by an international agreement;

5) Citizens of the Republic of Macedonia employed abroad if they have not been insured during their employment with the foreign insurer;

6) Citizens of the Republic of Macedonia employed by foreign employers in countries in which they are mandatorily insured, but in which pension and invalid rights determined in this Law can not be fulfilled nor utilized outside that particular

country,

7) Physical persons performing an activity;

8) Private farmers - tax payers of income on agricultural activities who

are engaged solely in an agricultural profession;

9) Unemployed individuals receiving money allowances;

10) Disabled workers waiting on vocational training, improvement of skills, on reassignment of employment or corresponding employment;

I 1) Self-supporting artists who have acquired such status in accordance with the standards, procedures and respective act assigned by the Minister of Culture- and 12) Sportsmen, who in compliance with the standards of the Union of

Sport Associations of the Republic of Macedonia, have acquired the status of leading sportsmen-amateurs according to this Law, unless otherwise insured.

Article 12

Employees specified under article I 1, paragraph 1, items I and 3 of this Law appointed to work abroad shall be subject to mandatory insurance unless they have been insured in accordance with the regulations of the foreign country during the period of employment, or unless otherwise resolved through an international agreement.

Citizens of the Republic of Macedonia who are employed by employers operating aborad shall be subject to mandatory insurance.

Article 13

Foreign nationals and individuals without citizenship on the territory of Macedonia shall be subject to mandatory insurance in the following instances:

1) When provided with a job by an employer;

2) When employed by foreign nationals or foreign legal entities unless otherwise designated by an international agreement-, and

3) When employed by international organizations and institutions, and foreign diplomatic and consular rnissions, unless insurance has been stipulated by an international agreement.

Article 14

Mandatory pension and invalid insurance based on disability and physical impairment caused by injury at work or occupational illness shall be provided for:

1) Pupils and students in organizations of vocationally directed education engaged in practical work;

2) Individuals serving sentences in prisons, juvenile prisons and in juvenile reformatory schools during the period of regular work while serving the sentence-7

3) Members of youth cooperatives during the period of work;

4) Health workers with higher education acquiring working experience for specialist examinations; and

5) Unemployed individuals during professional training, vocational retraining and improvement of skills.

The provisions under paragraph I item I of this article, shall also apply to citizens of the Republic of Macedonia, who in compliance with the regulations in force, have been sent abroad for education.

The provisions under paragraph I item I of this article, shall also apply to foreign nationals receiving education in the Republic of Macedonia under condition that the same treatment is provided for citizens of the Republic of Macedonia in the respective foreign country unless otherwise determined by an international agreement.

Article 15

Mandatory pension and invalid insurance shall be provided based on disability and physical impairment caused by injuries which have occurred during participation in:

1) Actions of rescue or protection against natural disasters and accidents;

2) Organized youth and other types of working campaigns;

3) Training by request of the defense authorities;

4) Providing assistance to police authorities in fulfilling

their official duties;

5) Cultural and artistic manifestations and contests organized by cultural and other types of associations; and

6) Sport and technical tournaments organized by sports and other types of associations.

Article 16

A general act of the Fund shall regulate the procedure whereby entities specifies in articles 14 and 15 are to fulfill pension and invalid insurance rights.

111. ACQURING AND DETE G RIGHTS

1. Old Age Pension

Article 17

Insured parties shall acquire the right to old age pension having turned either 63 years of age (men) or 60 years of age (women), and a minimum of 20 years working experience.

During the transitional period from January 1, 1994 till December 31, 1998 (men) and December 31, 2002 (women), the age limit for acquiring old age pension shall increase gradually as follows:

Year Men Women

01.01.1994 till 31.12.1994 60,5 55,5

01.01.1995 till 31.12.1995 61,0 56,0

01.01.1996 till 31.12.1996 61,5 56,5

01.01.1997 till 31.12.1997 62,0 57,0

01.01.1998 till 31.12.1998 62,5 57,5

01.01.1999 till 31.12.1999 63,0 58,0

01.01.2000 till 31.12.2000 58,5

01.01.2001 till 31.12.2001 59,0

01.01.2002 till 31.12.2002 59,5

01.01.2003 till 31.12.2003 60,0

Insured parties who have not completed 20 years of working experience shall acquire the right to old age pension having turned 65 years of age (men) and 63 years of age (women), and with a minimum of 15 years insurance.

During the transitional period from January 1, 1994 till December 31, 1998 the age limit for women shall increase gradually as follows:

Year Women

01.01.1994 till 31.12.1994 60,5

01.01.1995 till 31.12.1995 61,0

01.01.1996 till 31.12.1996 61,5

01.01.1997 till 31.12.1997 62,0

01.01.1998 till 31.12.1998 62,5

01.01.1999 till 31.12.1999 63,0

Insured parties shall acquire the right to old age pension having completed a working period of 40 years (men) and 35 years (women), regardless of their age.

Reduction of Age Limit

Article 18

The age limit for acquiring the right to old age pension shall be reduced for insured parties whose period of insurance has increased depending on the level of the expanded work period in the scope of one year.

1) For every seven years of service, 12 months of effective work shall be estimated as 13 months of work for insurance;

2) For every six years of service, 12 months of effective work shall be estimated as 14 months of work for insurance;

3) For every five years of service, 12 months of effective work shall be estimated as 15 months of work for insurance;

4) For every four years of service, 12 months of effective

work shall be estimated as 16 months of work for insurance;

5) For every three years and six months of service, 12 months of effective work shall be estimated as 17 months of work for insurance;

6) For every three years of service, 12 months effective work shall be estimated as 18 months of work for insurance-,

Pension Base

Article 19

Old age pension is determined from the average monthly salary earned by the insured party during the entire period of insurance starting from January 1, 1970 (hereinafter: pension base).

Old age pension for insured parties specified in article I I item 2 shall be determined from the pension base, i.e., from the average monthly salary earned by the insured party during the entire period of insurance starting from April 1, 1992 earliest.

The calendar year in which the insured party earned a salary or compensation for a minimum of six months insurance shall be used to determine the pension base.

With the exception of paragraph 3 of this article, the salary or compensation earned in the year in which the insured party acquired the right to old age pension shall not be used to determine the pension base.

Article 20

The pension base shall be determined according to the base defined in the general act of the Fund for insured parties and individuals who have not earned salaries or compensations after January 1, 1970.

Article 21

Salaries, money allowances and insurance basis, which the insured party earned in accordance with the general act of the employer in conformity with the collective agreement and the Law, shall be used to determine the pension base.

Article 22

The average monthly salary earned by the insured party during full working hours shall be used to determine the pension base.

Salaries earned for work exceeding or under full working hours shall be computed with the average monthly amount corresponding to the salary for full working hours.

The salary of insured parties working shorter hours and simultaneously for more than one employer during the calendar year shall be computed by adding the total earned salaries and the working hours spent with all employers as full work time.

Salaries earned for work exceeding the full working hours shall be used to determine the pension base under condition that such work had been performed in cases designated in the regulations on labor relations.

Article 23

When determining the pension base, the total salary earned through full time work or work longer or shorter than the full working hours during one year, shall be deduced to the average monthly amount which corresponds to the salary for full working hours.

The amount that corresponds to the full time salary specified in paragraph I of this article shall be computed in such a way that the total amount of estimated salaries used to determine the pension base and earned by the insured party during one year is divided by the number of full time, shorter and longer hours. The received amount per hour is multiplied by the average number of full time hours per month in the period in which the salary was earned. The received amount shall be used to determine the pension base.

Article 24

When determining the pension base for the period in which insured parties received salary compensation according to the regulations on heath insurance, the average salary amount shall be used to determine the pension base according to the salary earned in the calendar year prior to the year in which the temporary impediment occurred, computed with the valorization rate assigned for that respective year.

If insured parties did not earn a salary in the previous year, the average salary earned in the last year of insurance prior to the occurrence of temporary impediment, shall be used as a salary to determine the pension base computed with the valorization rate assigned for that respective year.

Article 25

When determining the pension base for unemployed workers receiving money allowances, for disabled workers waiting on vocational retraining, improvement of skills, reassignment of employment or corresponding employment, the base shall be used to determine the money

allowance.

The basis used to determine the money allowance is valorized with the coefficient that valorizes the salaries which are used to determine the base.

Article 26

When determining the pension base for disabled workers receiving money allowances for reduced working hours or money allowances for small salaries, in addition to receiving a salary, money allowances shall also be received that are to be computed with the valorization rate assigned for the year in which the allowance was earned.

Article 27

When determining the pension base for insured parties specified in article I I paragraph I item 3 of this Law, the salary or compensation paid for the performance of that function shall be used as a base for payment of pension and invalid insurance.

Article 28

The salary and insurance base used for payment of pension and invalid insurance contributions shall be used when determining the pension base of insured parties specified in

article 12 of this Law.

Article 29

The insurance base used for payment of pension and invalid insurance contributions shall be used when determining the pension base of insured parties specified in article I I paragraph I items 4, 5 and 6 and article 13 of this Law.

Article 30

The pension base for workers hired by employers shall be determined from the salaries earned in accordance with the agreement for employment.

The pension base for private farmers shall be determined from the insurance base.

The pension base for physical persons perfo@ng an activity, self-sporting artists and leading sportsmen-amateurs, shall be determined from the base used for computation and payment of contributions for pension and invalid insurance.

Article 3 1

Compensation earned on the basis of innovation, rationalization and other types of creativity at work that are in compliance with the general act of the employer and in conformity with the collective agreement and the Law, shall be used to determine the pension base if pension and invalid insurance contributions have been paid.

When determining the pension base, the compensation specified in paragraph I of this article shall be evaluated for the year in which the compensation was paid.

A.rticle 32

Salafies from previous years which serve to determine the pension base are valofized by the rates computed on the basis of the salaries of all employees on the territory of the Republic of Macedonia.

The valorization of salaries from previous years, which serve to determine pensions, shall be estimated according to the average salaries in the last calendar year prior to the year in which the insured party acquired the fight to pension.

The valorization rates on salaries from previous years shall be determined every year identically for all wages based on statistical data on the incomes of all employees on the territory of the Republic of Macedonia.

The valorization rates shall be assigned by the Fund through a general act.

Old Age Pension Levels

Article 33

Old age pension shall be determined according to the pension base in percentages depending on the length of the years of service:

Years of Service Men % Women %

15 years 35 40

15 years and 6 months 35.9 41.3

16 years 36.8 42.6

16 years and 6 months 37.7 43.9

17 years 38.6 45.2

17 years and 6 months 39.5 46.5

18 years 40.4 47.8

18 years and 6 months 41.3 49.1

19 years 42.2 50.4

19 years and 6 months 43.1 51.7

20 years 44.0 53.0

20 years and 6 months 44.9 53.9

21 years 45.8 54.8

21 years and 6 months 46.7 55.7

22 years 47.6 56.6

22 years and 6 months 48.5 57.5

23 years 49.4 58.4

23 years and 6 months 50.3 59.3

24 years 51.2 60.2

24 years and 6 months 52.1 61.1

25 years 53.0 62.0

25 years and 6 months 53.9 62.9

26 years 54.8 63.8

26 years and 6 months 55.7 64.7

27 years 56.6 65.6

27 years and 6 months 57.5 66.5

28 years 58.4 67.4

28 years and 6 months 59.3 68.3

29 years 60.2 69.2

29 years and 6 months 61.1 70.1

30 years 62.0 71.0

30 years and 6 months 62.9 71.9

3 1 years 63.8 72.8

31 years and 6 months 64.7 73.7

32 years 65.6 74.6

32 years and 6 months 66.5 75.5

33 years 67.4 76.4

33 years and 6 months 68.3 77.3

34 years 69.2 78.2

34 years and 6 months 70.1 79.1

35 years 71.0 80.0

35 years and 6 months 71.9

36 years 72.8

36 years and 6 months 73.7

37 years 74.6

37 years and 6 months 75.5

38 years 76.4

38 years and 6 months 77.3

39 years 78.2

39 years and 6 months 79.1

40 years 80.0

The level of old age pension may not exceed 80% of the pension base

Lowest Old Age Pension Level

Article 34

Insured parties who meet the requirements for acquiring old age pension rights are entitled to the lowest level of old age pension.

The lowest level of old age pension shall be assigned by the Fund through a general act form the average salary earned in the Republic of Macedonia in the previous year as follows:

- A minimum of 60% for pension beneficiaries who have completed 3 5 years of service (men) and over 30 years of service (women).

- A minimum of 55% for pension beneficiaries who have completed 25 years of service (men) and over 20 years of service (women) and

- A minimum of 50% for pension beneficiaries who have completed up to 25 years of service (men) and up to 20 years of service

(women).

Throughout the year, pensions specified in paragraph 2 of this article shall be brought into line with the percentage under which other pensions are reconciled.

Article 35

Insured parties who have acquired a portion of their pension through an international agreement, shall be entitled to the lowest pension level if the pension amount assigned by this Law and the foreign pension estimated at the current foreign exchange rate are smaller than the amount used to determine the lowest pension level specified in article 34 of this Law.

When determining the percentage of the lowest pension level, the years of insurance abroad shall not be taken into account.

Highest Pension Level

Article 36

The highest pension level may not exceed 80% of the average salary earned in the

Republic of Macedonia in the year prior to acquiring the pension right increased by four times

Adjustment of Old Age Pension

Article 37

Adjustment of old age pension shall be conducted from January I till July I in the current year, in accordance with the average salary earned in the non-business sector in the Republic as follows:

- From January 1, according to the average salary in the nonbusiness sector in the Republic earned in December of the previous year compared to the average salary in the non-business sector earned in July of the same year; and

- From July 1, according to the average salary in the non-business

sector in the Republic earned in June of the current year compared to the average salary in the non-business sector earned

in December of the previous year-

The adjustment specified in paragraph I of this article shall be carried out starting from the January payment of pensions until July in the current year.

The adjustment of old age pensions may be conducted in intervals shorter than the period designated in paragraph I of this article if the increase or decrease of salaries exceeds 5% for one or more months compared to the month in which the last adjustment was conducted.

The adjusted pension under paragraph 3 of this article applies to the first day following the month in which the salary increases is determined.

For the implementation of paragraph I of this article, the pension earned in the current year shall undergo previous adjustment in accordance with the salary increase in January of that year compared to the previous year, taking into account the impact of pension adjustments induced by other Laws.

1 7

2. Rights Based on Disability

Disability

Article 38

Under this Law, disability presupposes that insured parties due to permanent changes in their state of health caused by injuries at work, occupational disease, injuries induced outside of work or though illness, which can not be cured through treatment or medical rehabilitation resulting in the decline or loss of working skills at the place of work of the insured parties prior to the occurrence of disability.

Individual Work

Article 39

Individual work shall denote duties at the place of employment to which the insured party had been appointed prior to the occurrence of disability.

Individual work at employment position prior to the termination of the last insurance, shall be taken into consideration for individuals without employment during the occurrence of disability.

The occupation on the basis of which farmers have been mandatorily insured, according to this Law, shall be considered as individual work.

Other Corresponding Work

Article 40

Other corresponding work shall denote work that insured parties, based on vocational training and working skills, are able to perform under reduced or full working hours at a different place of work that will not worsen their state of health or disability.

1 8

Limited Working Abilities

Article 41

Limited working abilities shall be acknowledged in cases when insured parties are unable to fulfill their duties through normal working efforts, that do not present a threat to their state of heath, which according to article 38 of this Law have been appraised as a disability.

Remaining Working Capabilities

Article 42

Remaining working capabilities shall be acknowledged when limited working abilities are determined with insured parties capable of working half of the full working hours at the position held prior to the disability occurrence, or full time at a different position with or without vocational training or improvement of skills.

Loss of Working Skills

Article 43

Loss of working skills shall be acknowledged if insured parties are entirely or permanently incapable of perfo@ng their own or similar duties, or other corresponding jobs with full working hours through vocational training or improvement of skills.

Loss of working skills shall be acknowledged for insured farmers who are entirely or permanently incapable of perfo@ng their work.

Injury at Work

Article 44

Under this Law, injury at work shall indicate injuries inflicted on insured parties through direct and momentary mechanical, physical or chemical action, and injuries caused by abrupt changes in body posture, sudden overloading of the body or other changes of the physiological state of the organism, if such injuries are brought about during the performance of duties at the

1 9

place of work.

Injury at work shall also imply to injuries specified under paragraph I of this article which insured parties may undergo from their place of residence to the place of work and vice-versa, during official travel, when traveling to a new place of work, returning from vacation or other leave by order of the employer and during vocational retraining, improvement of skills or employment in compliance with this Law.

Insured parties suffering from illnesses incurred as a direct or extraordinary outcome of an accident or Act of God during the performance of duties or work related activities, shall be acknowledged as injury at work.

Injuries suffered by insured parties during work, specified under articles 14 and 15, shall also be acknowledged as injuries at work.

Occupational Illness

Article 45

Illness induced through continual direct impact from the process and conditions of work on the working skills of the insured party shall be acknowledged as professional illnesses under this Law.

The Nfinister of Labor and Social Policy shall designate the list of professional illnesses.

Article 46

Under this Law, disabled workers are those insured parties who on the basis of disability acquire the right to pension and invalid insurance,

A) Rights Based on Remaining Working Capabilities

Article 47

Insured parties with remaining working capabilities shall be entitled to:

1) Work with reduced working hours;

2) Reassignment or appointment to another appropriate position;

and

3) Vocational retraining or improvement of skills.

Private farmers shall not acquire the rights specified under paragraph I of this article.

With the exception of paragraph I of this article, physical persons engaged in work are entitled to either vocational retraining or improvement of skills and the right to appropriate employment.

Reduced Working Hours

Article 48

Insured parties with remaining working capabilities, who have been acknowledged incapable of working full working hours at their position or another corresponding position, with or without vocational retraining or improvement of skills, shall be entitled to the same or other appropriate work with working hours in accordance with their remaining working capability which may not be less than half of the full working hours.

Reassignment to Other Corresponding Positions

Article 49

Insured parties with remaining working capabilities, who have been acknowledged incapable of performing their duties under full working hours or reduced working hours, but who are able to work full time at another appropriate position, shall be entitled to reassignment to other corresponding positions.

Insured parties may be reassigned with their own approval to positions which require lower-grade qualifications than the ones they possess.

Vocational Retraining and Improvement of Skills

Article 50

Insured parties with remaining working capabilities, who have been acknowledged incapable of working full working hours at their position or another corresponding position, are entitled to vocational retraining or improvement of skills if they can not be assigned to other work with full working hours or qualified for another position depending on their condition of disability.

The right to vocational retraining or improvement of skills is acquired by men up to 50 years of age and women up to 45 years of age.

Following the completion of vocational retraining or improvement of skills, insured parties shall be entitled to reassignment or employment at positions for which they have been qualified.

At their own request, female insured parties may fulfill the right to vocational retraining or improvement of skills at the same age as male insured parties.

Article 51

Disabled workers, who have earned the right to vocational retraining or improvement of skills, shall be qualified for other corresponding work which requires qualifications necessary to perform the duties at the position held prior to the occurrence of disability,

With the exception of paragraph I of this article, vocational retraining or improvement of skills may be provided for other positions demanding higher qualifications than those required of the incapacitated worker for the position held prior to the occurrence of disability, if such qualifications are justified by professional skills, age, years of service and propensity, and if possibilities exist for employment after the qualifications have been completed.

Article 52

Vocational retraining and improvement of skills of disabled workers shall be conducted through practical work under general guidelines and procedures used by employers for qualification of other employees.

Vocational retraining and improvement of skills may also be conducted in the respective organizations of vocationally directed education.

Article 53

Vocational retraining and improvement of skills and employment of disabled workers shall be conducted under specific conditions in compliance with the Law in instances when disabled workers are unable to undergo vocational retraining, improvement of skills or seek new

employment under general requirements.

The Fund, in agreement with other entities, shall participate in the funding to employ children of insured parties affected with physical and psychological disorder.

Money Allowances

Article 54

Insured parties with remaining working capabilities shall be entitled to monev allowances:

1) For salaries starting from the date of the disability occurrence until the date of reassignment, employment at another corresponding position, vocational retraining or improvement of skills;

2) For salaries during vocational retraining or improvement of skills;

3) For salaries starting from the date of completion of vocational retraining or improvement of skills, until the date of reassignment or employment at another corresponding position- 7

4) For salaries due to work under reduced working hours; and

5) For smaller salaries earned at a different position.

Article 55

Money allowances specified in article 54 items 1,2 and 3 of this Law, shall be determined based on salaries and salary compensations earned in the year prior to the occurrence of disability.

In cases when insured parties have not earned a salary in accordance with paragraph I of this article, money allowances shall be determined based on salaries earned in the last year of insurance prior to the year in which the disability occurred, and reduced by the annual increase of salaries in the country prior to the year in which the disability occurred, i.e., at an annual level prior to the year in which the rights were acquired.

In cases when insured parties have not earned a salary or salary compensation in

concurrence with paragraphs I and 2 of this article, money allowances shall be determined according to the base which has been assigned by the Fund through a general Act.

Money allowances specified under paragraph I of this article shall be determined according to the base within the following levels:

- 70% from the date of the disability occurrence until the date of reassignment, employment at another position, vocational

retraining or improvement of skills, if the disability resulted from illness or injury outside of work; and

I 00% during vocational retraining or improvement of skills in instances when the disability occurred as a result of injury at work or occupational illness-,

Article 56

Money allowances specified in article 54 items 1, 2 and 3 of this Law may not be less than 60% of the average salary earned in the country in the last quarter.

Article 57

Money allowances specified in article 54 of this Law, when earned with an employer shall be adjusted throughout the year with the salary increases approved by the employer. Money allowances obtained by the Fund shall be adjusted with the procedure for pension regulation.

Article 58

In instances of disability caused by occupational illness or injury at work, money allowances specified in article 54 item 4 of this Law shall be determined through the difference between the salary earned by the disabled worker for reduced working hours, and the salary for the same position under full working hours. In cases of disability caused by illness or injury outside of work, money allowance shall be determined within an 85% level of the specified difference.

The money allowance designated in paragraph I of this article, together with the salary for

reduced working hours, may not exceed the highest salary provided by the employer for the same or similar position with full working hours.

Article 59

Money allowance payments specified in article 54 item 5 of this Law shall be effected within the level of the difference between the valorized average salary earned by the insured party in the year of insurance prior to the year in which the disability occurred, and the average salary earned at the reassigned position.

In cases when the last year of insurance specified in paragraph I of this article is not the year that precedes the occurrence of disability, the average salaries in that respective year shall be valorized at the level of the average salaries in the year prior to the occurrence of disability.

Money allowances and advance payments designated in paragraph I of this article shall be adjusted throughout the year with the salaries rendered by the employer.

Money allowances due to smaller salaries at different positions, together with the regular income, may not exceed the highest salary rendered by employers for equal or similar work.

Fulfillment of Rights Based on Remaining Working Capabilities

Article 60

Rights based on remaining working capabilities shall be fulfilled regardless of the completed years of service.

Article 61

The funds for payment of money allowances specified in article 54 of this Law, shall be provided and rendered by the employer.

With the exception of paragraph I of this article, in cases of termination of employment of disabled workers with remaining working capabilities due to bankruptcy or liquidation of the legal entity, the funds for payment of money allowances until new employment is secured as specified in article 54, and the rights stipulated in article 47 paragraph 3, shall be secured by the Fund within a period of three years from the termination of the legal entity.

Insured parties specified in paragraph 2 of this article are obliged within 30 days from the

termination of the legal entity to report to the office in charge of employment.

Insured parties shall not receive money allowances on the basis of unemployment when collecting the allowances specified in paragraph 3 of this article.

Article 62

The right to money allowance shall terminate should insured parties find employment or meet the requirements for old age pension prior to the expiration of the term specified in article 61 paragraph 3 of this Law.

B) Disability Pension

Article 63

Insured parties suffering loss of working abilities or with remaining working capabilities, who due to excess years of age can not undergo vocational retraining or improvement of skills to qualify for other corresponding positions, shall acquire the right to disability pension in the

following instances:

1) If disability is inflicted through injury at work or occupational illness, regardless of the years of service; and

2) If disability is inflicted through injury outside of work or illness, under condition that the insured party prior to the

occurrence of disability has fulfilled the expected years of

service covering at least one third of the expected 20 years of age from the date the disability occurred (working experience),

estimating the working experience at full years.

Should disability occur prior to 30 years of age due to injury outside of work or illness, the insured party shall acquire the right to disability pension if covered by insurance on the date the disability occurred and if.

1) Disability occurred by 20 years of age with a minimum of six months insurance;

2) Disability occurred by 25 years of age with a minimum of nine

months insurance; and

3) Disability occurred by 30 years of age with a minimum of twelve months insurance;

Disabled veterans in the categories from I-vi, and disabled individuals, counterparts of peacetime disabled veterans in the categories from I-VI, who in accordance with article 38 of this Law have been acknowledged incapable of working half of the full working hours, shall acquire the right to disability pension having fulfilled the requirement specified in paragraph I of this article, regardless if they are able to qualify for corresponding positions with or without vocational retraining or improvement of skills.

The period from 23 years of age, i.e., 26 years, until the date of disability occurrence, shall be considered as working experience specified in paragraph I item 2 of this article, pertaining to insured parties, who through regular education have acquired advanced or professional training.

The working span of insured parties, who have rendered military service after 20 years of age, shall be reduced by the period occupied in service.

Article 64

Disability pension shall be determined from the pension base which is assigned in compliance with articles 19 to 32 of this Law.

The pension base of insured parties specified in articles 14 and 15 of this Law shall be determined by the Fund through a general Act.

Article 65

Disability pension in instances of disability inflicted through injury at work or occupational illness, shall be determined from the pension base at the same level in which old age pension is assigned for 40 years of working experience for men, i.e., 35 years for women.

Disability pension in instances of disability inflicted through illness or injury outside of work, shall be determined from the pension base depending on the length of working experience and years of age so that higher pensions may be assigned for longer years of service.

The level of disability pension specified in paragraph 2 of this article may not be less than 44% of the pension base for men and 53% of the pension base for women, if disability occurred prior to the ages designated in article 17 paragraph 2 of this Law. In instances of disability after the ages stipulated in article 17 paragraph 2 of this Law, the level of disability pension may not be less then 3 5% of the pension base for men and 40% for women.

Disabled veterans in the categories from I-VI, and disabled individuals, counterparts of peacetime disabled veterans in the categories from I-VI entitled to disability pension, shall receive annuity within an 80% level of the pension base if half of the years of service have been covered by the accrued time for benefits.

Female insured parties may acquire the right to disability pension at their own request, under the same requirements and levels which apply to male insured parties.

The level of disability pension may not be lower then that of old age pension when equal years of service are concerned.

Article 66

Beneficiaries of disability pension suffering loss of working skills prior to the ages specified in article 17 paragraph 2 of this Law, whose pensions have been assigned in accordance with article 65 paragraph 3 of this Law and equal less than 80% of the pension base, shall also receive a disability supplement.

Disability supplements shall be determined depending on the proportion between the years of service and the accrued benefits as follows:

1) If accrued benefits equal less than one half of the years of service - 10% of the disability pension amount;

2) If accrued benefits equal one half or above, but less then 3/4

of the years of service - 15% of the disability pension amount; and

3) If accrued benefits equal 3/4 of the years of service or above - 20% of the disability pension amount.

Disability pension together with the disability supplement may not exceed 80% of the pension base.

Disability supplement is a constituent of the disability pension.

Article 67

In instances when disabled workers acquire the right to disability pension based partially on injury at work or occupational illness,

and partially on illness or injury outside of work, disability pension shall be determined as

one annuity consisting of a two proportional shares of disability pension computed for instances of injury at work or occupational illness, and for illness or injury outside of work.

The guidelines to determine disability pension specified in paragraph I of this article shall be assigned by the Fund through a general Act.

Article 68

Insured parties who meet the requirements to acquire the right to disability pension shall be entitled to the lowest disability pension level.

The lowest disability pension level shall equal:

- For beneficiaries earning pensions based on disability inflicted through injury at work or occupational illness, and for beneficiaries earning pensions based on over 30 years of service (men), i.e., 25 years of service (women), within the same level as beneficiaries of the lowest old age pension amounts specified in article 34 paragraph 2 line I of this Law;

- For beneficiaries earning pensions based on over 25 years of service (men), i.e., 20 years of service (women), within the same level as beneficiaries of the lowest old age pension amounts specified in article 34 paragraph 2 line 2 of this Law;

- For beneficiaries earning pensions based on up to 25 years of service (men), i.e., up to 20 years of service (women), within

the same level as beneficiaries of the lowest old age pension article 34 paragraph 2 line 3 of this Law.

amounts specified in

Article 69

The provisions of this Law pertaining to the highest levels of old age pension and to old age pension adjustments shall also apply to disability pension.

3. Family Pension Article 70

Family pension may be acquired by the following family members:

1) Spouses;

2) Children (bom in matrimony or outside of matrimony, adoptee, foster children in the care of insured parties, grandchildren, orphans in the care of insured parties); and

3) Parents (fathers and mothers, stepfathers, stepmothers, and adoptee in the care of the insured party).

Family pension may also be acquired by divorced spouses if alimony has been approved by way of court ruling.

Article 71

Family members shall acquire the fight to family pension in the following instances:

1) If the deceased insured party had accumulated at least five years of insurance, or a minimum of ten years accrued time for

pension;

2) If the deceased insured party fulfilled the requirements for old age or disability pension; and

3) If the deceased insured party had been the recipient of old age or disability pension.

In cases of death of insured parties resulting from injuries at work or occupational illness, family members shall acquire the right to family pension regardless of the insured party's length of accrued time for pension.

Article 72

Widows shall acquire the right to fa@ly pension in the following instances:

1) Having turned 45 years of age at the time of death of the

spouse;

2) If incapable of work until the spouse's time of death, or if such incapability occurred within one year from the spouses's time of death;

3) If one or more children of the deceased have acquired the right to family pension after the time of his death, and the children are in parental care of the widow;

4) Having either turned 40 or 45 years of age at the time of spouse's death, or if incapability occurred within the mentioned period.

Should widows become incapable of work or turn 45 years of age when utilizing the right based on parental care (specified in paragraph 1, item 3), the right to family pension shall be retained permanently.

Widows who have been deprived of the right to family pension assigned on the basis of parental care after 40 years of age, shall acquire the right to family pension having turned 45 years of age.

Article 73

Widowers shall acquire the right to family pension in the following instances:

1) Having turned 55 years of age at the time of death of the spouse;

2) If incapable of work until the spouse's time of death, or if such incapability occurred within one year from the spouses's time of death;

3) If one or more children of the deceased have acquired the right to family pension after the time of her death, and the children are in parental care of the widower- and

4) Having acquired of the right to family pension assigned on the basis of parental care after 50 years of age, shall become entitled to family pension after the age of 55 years.

Should widowers become incapable of work or turn 55 years of age when utilizing the right based on parental care, the right to family pension shall be retained permanently.

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Widowers who have been deprived of the right to family pension assigned on the basis of parental care after 50 years of age, shall acquire the right to family pension having turned 55 years of age.

Article 74

Widows, i.e., widowers, who have acquired the fight to family pension based on parental care, shall retain that fight during the military service of their children.

Article 75

Children shall acquire the fight to family pension in the following instances: 1) Up to the age of 15 years, or up to 26 years if engaged in studies;

2) If incapable of work prior to the death of the insured party, i.e. pension beneficiary providing guardianship, or if such

incapability occurred within one year from the time of death of the insured party, i.e., pension beneficiary.

Should schooling be discontinued due to illness, children may acquire the fight to family pension during the period of ailment up to the age of 26 years and over, which may not exceed the period of absence from regular education due to illness.

Children who have discontinued their schooling due to army service shall receive family pension during the service.

Should children become incapable of work when utilizing the fight to family pension, they shall retain the right to family pension permanently.

Disabled children shall be entitled to family pension after the termination of employment.

Article 76

Parents who have received support from an insured party, i.e., pension beneficiary up to the time of their death, shall acquire the fight to family pension in the following instances:

1) Having turned 45 years of age (mothers), or 55 years of age (fathers) at the time of

death of the insured party, i.e.,

pension beneficiary; and

2) If younger than 45 years, i.e, 55 years, and if found incapable of work at the time of death of the insured party, i.e., pension beneficiary.

Article 77

Working incapability, on the basis of which the right to family pension is acquired, shall presuppose incapability of independent livelihood and work in cases of children, and loss of working capabilities where other individuals are concerned.

Article 78

The right to family pension shall primarily be entrusted to spouses and children of the insured party, i.e., pension beneficiary (hereinafter: close family members).

Parents, adoptee, grandchildren and orphans in the care of the insured party, i.e., pension beneficiary (hereinafter: wider family members) shall acquire the right to family pension in instances when the insured party, i.e., pension beneficiary is deprived of close family members entitled to family pension, or if the pension received by close family members does not offset the full amount of the base according to which the fancily pension is determined.

Article 79

Family pension shall be determined on the basis of old age or disability pension received by the insured party at the time of death, i.e., according to the pension received by the pension beneficiary at the time of death.

The family pension level shall be assigned in percentages according to the base, which is comprised of old age or disability pension, namely, 70% for one family member and 10% for every other member, but no more than I 00% of the base.

Children deprived of both parents shall receive the family pension earned by one parent, and increased by a portion of the pension either received or rightfully earned by the other parent:

1) Two children............................................. 20%

2) Three children........................................... 30%

3) Four or more children............................... 40%

In instances when three or more fa@ly members are the recipients of a family pension, the level may not be lower than 40% of the pension base earned by the deceased insured party.

When determining the family pension base of insured parties with less than 15 years of accrued time for pension who have failed to meet the requirements for disability pension, the old age pension shall be assessed on the basis of 15 years accrued time.

Article 80

In instances when close and wider family members are entitled to pension, the closer family members shall receive the family pension determined on the basis of the percentages specified in article 79, paragraph I of the Law, while wider family members shall receive the balance of the full family pension amount.

In instances when the fight to family pension is acquired by divorced spouses, one fa@ly pension shall be assigned to the spouse who has entered new wedlock, while the other divorced spouse shall receive the level which is assigned for one family member.

Article 81

Family members of the insured party or pension beneficiary shall be entitled to the lowest family pension level.

The lowest family pension level shall be determined on the basis of the lowest old age pension level, i.e., the highest disability pension level, depending on the base which has been assigned for the family pension.

The provisions under this Law pertaining to the lowest old age pension level and the adjustment of old age pension shall also apply to fa@ly pension.

4. Money Allowances For Physical Injury

Article 82

Physical injury of the insured party shall denote either loss, vital impairment or

considerable incapacitation of particular organs or parts of the body, interfering with the normal functioning of the organism and requiring greater efforts in the fulfillment of day-to-day necessities, regardless of the fact that it may or may not cause disability.

In instances when physical injuries have been inflicted during the period of insurance, the insured party shall acquire the right to money allowance rendered for physical injury under the same conditions that apply for accrued time for pension by which the right to disability pension is acquired.

The types of physical injuries on the basis of which the right to money allowance is acquired and the impairment percentage is determined through a general act issued by the Fund with prior recommendations rendered by professional and scientific institutions.

Article 83

Insured parties shall acquire the right to money allowance for physical injuries regardless if they have acquired and are the recipients of other fights based on pension and invalid insurance.

Insured parties with physical injuries between 30%-40% based on the list of physical injuries, shall be depfived of the right to money allowance if impairments have been inflicted as the result of illness, injuries outside of work, or pre-existing physical impairments prior to employment and subsequent deterioration of the same. With the exception of a pre-existing physical impairment of one of two identical organs prior to employment, the insured party shall acquire the right to money allowance for physical injury of both organs.

Article 84

The levels of money allowances for physical injuries shall be determined according to the percentage of the physical injury on the following basis:

12% of the average salary earned in the Republic of Macedonia in

the year prior to the occurrence of the physical impairment caused by injury at work or occupational illness; and

- 9% of the average salary earned in the Republic of Macedonia in the year prior to the occurrence of the physical impairment caused by illness or injury outside of work.

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Article 85

Should two or more physical impairments arise, the total percentage shall be determined by adding the following amounts:

1) 20% for each subsequent physical impairment in the range of 50% and over; and

2) 1 0% for each subsequent physical impairment within the range between 30% to

40%.

In cases of pre-existing physical injuries resulting from various origins, the percentage shall be determined according to paragraph I of this article, while money allowances shall be estimated according to the higher percentage base of the physical injury.

The total physical injury percentage, as stipulated in items I and 2, paragraph I of this article, may not exceed 100%.

Article 86

Beneficiaries of money allowances for physical injuries shall receive money allowances should existing physical injuries deteriorate, or should new conditions of physical impairments arise, based on the recent, i.e., total percentage of the physical injury.

Article 87

Should beneficiaries acquire the right to money allowances for the same physical injury condition on the basis of pension and invalid insurance regulations, and based on the right to disability pension as a peacetime disabled veteran according to the regulations for veterans, only one of the above fights may be utilized by the beneficiary by personal preference.

Article 88

The provisions of this Law for adjustment of old age pension shall also apply to money allowances rendered for physical injuries.

IV. ACQUISITION AND REALIZATION OF RIGHTS GRANTED TO

INSURED PARTIES BELONGING TO PARTICULAR CATEGORIES

UNDER SPECIFIC CONDITIONS

A) Insured Parties Employed in Military Defense

Article 94

Insured parties in the Ministry of Defense and in the service of the Army of the Republic of Macedonia (soldiers under contract, junior officers, officers and civilians in the Army service) shall acquire longer years of insurance as follows:

1) For every 12 months effective work rendered in the positions below, 18 months of insurance shall be granted for:

a) Flying services: operative pilots, patrollers, radio operators, aircraft mechanics, aviation photographers or other duties performed either in the flying services or as members of the

sanitary services for inspection and pilot training, or inspection and protection of

aircraft equipment, with an annual

minimum of 90 hours flying time during inspection and training-,

b) Parachute services: operative parachutes;

c) Diving assignments; and

d) Assigm-nents in the special mission units;

2) For every 12 months effective work rendered in the positions

below, 16 months of insurance shall be granted for:

a) Performing duties as a member of a special research team for the first phases of production, final

experiments and research, if a minimum of half of the average annual working hours have been spent rendering those duties;

b) Performing duties related to radiologic, biologic and chemical

laboratories or on testing grounds assigned by the

Ministry of Defense; and

c) Performing duties related to electronic detection and crypto

inspection of arms in

protection in

protection, security,

undercover work, counterespionage and

military police;

3) For every 12 months effective work rendered in the positions below, 15 months of insurance shall be granted for:

a) Work on radar equipment which is exposed to radar radiation: individuals engaged

in repairs, intricate reconstructions and

probes, or instructor-trainer positions for radar equipment

repairs, if a minimum of 3/4 of the average annual working hours

have been spent rendering those duties; and

b) Perfon-ning duties in troops including brigades and respective

units, specific assignments in the command of the corps, in

military institutions in which services are executed under troop

conditions, determined by the Government of the Republic of Macedonia at the proposal of the Ministry of Defense.

Article 95

Insured parties in the Ministry of Defense and in the service of the Armed Forces of the Republic of Macedonia, with a minimum of 25 years accrued time for pension, of which 15 years have been effectively occupied in positions with increased years of insurance, having turned 55 years of age (men), i.e., 50 years of age (women), may acquire the fight to old age pension should their employment terminate depending on the nature of the service.

Article 96

Insured parties in the Ministry of Defense and in the service of the Armed Forces of the Republic of Macedonia shall be entitled to old age pension following 25 years of accrued time. The old age pension shall equal 62.0% of the pension base for men, i.e., 65.6% of the pension base for women, increased by 1.2% of the pension base for every subsequent year until the completion of 40 years of accrued time for pension (men), i.e., increased by 1.44% of the pension base for every subsequent year until the completion of 35 years of accrued time for pension (women). Old age pension may not exceed 80% of the pension base.

Article 97

The age limit for acquiring the right to old age pension shall be reduced for those insured parties in the Ministry of Defense and in the service of the Armed Forces of the Republic of Macedonia, whose accrued years of insurance have been increased, depending on the level of the increased years of service and by an average of one year:

1) For every six years of employment at positions with 12 months effective work, the accrued time for insurance shall be computed as 14 months;

2) For every five years of employment at positions with 12 months effective work, the accrued time for insurance shall be computed as 15 months;

3) For every four years of employment at positions with 12 months effective work, the accrued time for insurance shall be computed as 16 months; and

4) For every three years of employment at positions with 12 months

effective work, the accrued time for insurance shall be computed as 18 months;

Article 98

When determining the disability pension according to the length of the accrued years of service for insured parties in the Ministry of Defense and in the service of the Armed Forces of the Republic of Macedonia, the percentages specified in article 96 of this Law shall be applied. The lowest percentage for 25 years of accrued time for pension shall be set at 62% of the pension base for men, i.e., 65.6% of the pension base for women.

Article 99

The difference between pensions which are determined without the implementation of articles 94 to 98 of this Law, and pensions which are determined with the enforcement of the above articles, as well as the full pension amount assigned for insured parties who do not fulfill the general requirements for acquiring the pension rights without the implementation of the listed articles, shall be dispensed from the Budget of the Republic of Macedonia. The funds for the portion of pensions which are to cover the accrued years of service in the former Yugoslav National Army until April 1, 1992, shall be provided from the Budget of the Republic of Macedonia.

b) Insured Parties Employed in the Ministry of Interior and

in Penitentiary and Reformatory Institutions

Article I 00

In compliance with the regulations that apply to the operations of internal affairs, the insurance of authorized employees shall be increased so that 12 months of effective work rendered at such positions shall be computed as 16 months of insurance.

The right to increased insurance, as stipulated in paragraph I of this article, shall also be granted to employees of the Ministry of Interior occupying positions that are the cause of reduced working abilities due to strenuousness and particular working conditions under which they are performed.

The Government of the Republic of Macedonia shall designate the positions referred to in paragraph 2 of this article by proposal of the Minister of Interior.

The provisions in paragraph I and 3 of this article shall not apply to the periods during which employees undergo professional training under the directive of the Ministry of Interior, when placed on disposal, or available due to termination of a position or due to continual reduction of the work load.

Article I 0 1

Employees of the Ministry of Interior with a minimum of 25 years accrued time for pension, of which 15 years have been effectively occupied in positions with increased years of insurance, and having turned 55 years of age (men), i.e., 50 years of age (women), may acquire the right to old age pension should their employment terminate depending on the nature of the service,

Article 102

In compliance with the regulations on the enforcement of sentences against criminal acts and business violations, the accrued years of insurance of authorized employees shall be increased so that 12 months of effective work rendered at positions in penitentiary and reformatory institutions shall be computed as 16 months of insurance.

The right to increased insurance, as stipulated in paragraph I of this article, shall also be granted to employees of the Ministry of Justice and employees of penitentiary and reformatory

institutions, occupying positions that are the cause of reduced working abilities due to strenuousness and particular working conditions under which they are performed.

The Government of the Republic of Macedonia shall designate the positions referred to in paragraph 2 of this article by proposal of the Minister of Justice.

The provisions in paragraph I and 2 of this article shall not apply to the periods during which employees undergo professional training under the directive of the penitentiary and reformatory institution.

Article 103

Employees of the Ministry of Justice and of penitentiary and reformatory institutions, with a minimum of 25 years accrued time for pension, of which 15 years have been effectively occupied in positions with increased years of insurance in compliance with article 102 paragraphs I and 2 of this Law, and having turned 55 years of age (men), i.e., 50 years of age (women), may acquire the right to old age pension should their employment terminate depending on the nature of the service.

Article 104

Pensions may be acquired under special conditions by employees of the Ministry of Interior, the Ministry of Justice, and employees of penitentiary and reformatory institutions, who at the moment of acquiring the right, do not occupy positions with increased years of insurance, but with a minimum of 25 years accrued time for pension, of which 15 years have been effectively occupied in positions with increased years of insurance, and having turned 55 years of age (men), i.e., 50 years of age (women), should their employment terminate depending on the nature of the service.

Article 105

The employees specified in articles 100, 102 and 104 of this Law, shall be entitled to old age pension following 25 years of accrued time. The old age pension shall equal 62.0% of the pension base for men, i.e., 65.6% of the pension base for women, increased by 1.2% of the pension base for every subsequent year until the completion of 40 years of accrued time for pension (men), i.e., increased by 1.44% of the pension base for every subsequent year until the completion of 3 5 years of accrued time for pension (women). Old age pension may not exceed

80% of the pension base.

Article 106

When determining the disability pension based on the length of the accrued years of service for employees stipulated in articles 100, 102 and 104 of this Law, the percentages specified in article 105 of this law shall be applied, given that the lowest percentage for 25 years of service shall be set at 62.0% from the pension base for men, i.e., 65.6% of the pension base for women.

Article 107

The age limit for acquiring the right to old age pension of employees specified in articles 100, 102 and 104 of this Law, who have acquired the right to old age pension according to the general requirements, shall be reduced by one year, for each completed four years of effective work at positions with increased years of insurance.

The reduction of the age limit shall also apply to insured parties occupying positions specified in articles 100 and 104 of this Law, who have not acquired the right to old age pension in compliance with the special conditions provided under this Law.

Article 108

The positions specified in articles 100, 101 and 104 of this Law, providing increased insurance and reduction of the respective age limit, shall be liable to auditing according to the methods and procedures used to determine those positions. The auditing shall be conducted latest within five years from the date the position is determined.

Article 109

The difference between pensions which are determined without the implementation of articles I 00 to 107 of this Law, and pensions which are determined with the enforcement of the above articles as well as the full pension amount assigned for insured parties who do not fulfill the general requirements for acquiring the pension rights without the implementation of the listed articles, shall be dispensed from the Budget of the Republic of Macedonia.

V. ACQ G AND FULFILLMENT OF RIGHTS OF THE PERSONS

PERSECUTED AND IWRISONED FOR THE IDEA OF TIHE INDEPENDENT STATE OF

MACEDONIA

Article II 0

The Retirement and Disability Insurance Rights shall be granted to persons who used to be persecuted and imprisoned for the idea of the independent state of Macedonia.

Article III

Special Governmental Commission, with its decision shall estimate if the person used to be persecuted and imprisoned for the idea of the independent state of Macedonia.

An appeal, against the decision set forth in paragraph I of this article, can be lodged with the Government of the Republic of Macedonia.

Article 1 12

For the persons defined in article I I I of this law, the time that they spent in a penitentiary shall be calculated and considered as the time spent at the working place.

Article 1 13

The persons defined in article I I I of this law, and members of his/her family shall exercise their retirement and disability rights under the conditions that are valid for the rest of the beneficiaries, unless this law prescribes otherwise.

Article 114

The basis for receiving a pension for the persons defined in article I I I of this law, shall be

calculated according to the average salary received in the Republic in the last year, before the year in which the pension is increased for 30% or the increase of the basis of the pension for the other beneficiary, but only when it is more beneficial for the insured.

Article I 1 5

The persons defined in article I I I of this law, shall file their request with the expert's unit of the Fund, referring to the years of imprisonment to be considered as years of seniority.

Article I 1 6

Financial resources for more beneficial rights derived from retirement and disability insurance for the persons defined in article I I I of this law, shall be allocated from the budget of the Republic of Macedonia for:

The whole amount of the pension, in case the insured fulfils all the conditions for the retirement, laid down in article 112 of this law;

The difference between the amount of the retirement estimated by the seniority set forth in article 1 12, and the amount of the retirement estimated without that seniority in cases when the insured fulfilled the conditions to receive the pension;

The difference between the retirement estimated with the basis for calculation of the retirement, as well as for other insured, and the pension estimated from the retirement basis set forth in article 1 14 of this law-

VI. SENIORITY

Article 117

The seniority within the meaning of this law, that constitutes the basis for acquiring and exercising rights originating from the retirement and disability insurance shall be calculated as follows:

From the time the insurance commences according to the provisions of this law;

The time the insurance commences according to the regulations that were valid prior to this law.

1. Seniority considered to be effective for the purpose of insurance

Article 118

The seniority shall be calculated from the time that the insured defined in articles I I and 12 of this law spent working after he/she attained the age of 15, and during which he/she was compulsorily insured.

Article I 1 9

Seniority shall be calculated from the time that the insured spent working full time.

Seniority shall be acquired working part time in the following cases:

During labor handicaps, war handicaps, civil handicaps from the war, and other handicaps which affect working ability;

When employees are taking care of children;

In case of disability, seniority acquired for a part time job; except in cases enumerated in paragraph 2 of this article, shall be translated into a full time hours estimated for that kind ofjob.

Paragraphs 1, 2, and 3 of this article shall also apply when the seniority is calculated for two or more jobs at the same time.

Article 120

Seniority shall also be considered to be the time :

During which the employee, after the labor relation ceased, was ill on the basis of which he/she was insured in case she/he continued to receive compensation, and

Spent on the professional rehabilitation, i.e., education that he/she received because of labor handicap, war handicap, or blindness, or muscle disease, paraplegia, child paralysis or multiple sclerosis or any other civil handicap resulting from war, regardless of whether he/she was insured before.

Article 121

Seniority shall also be acquired for the time spent on continuous education and

professional training.

Article 122

Seniority shall also encompass the time which was spent by the insured during the working time on the basis of which he/she was insured in the following cases:

30 days of unpaid absence from work during the course of one calender year;

30 days of detention-,

30 days of imprisonment; and

Participation in the strike according to the Law on Strike.

Seniority shall encompass all the time spent under suspension. In the case of detention, seniority exists only when the prosecution was denied and the procedure ceased for some other reason except for the jurisdictional reach of the Court.

Article 123

Seniority shall also encompass the time spent without a job as a result of a labor handicap waiting for a job or spent on professional rehabilitation, i.e., pre-qualification and professional training, as well as, spent on waiting for a convenient job.

A.rticle 124

Seniority shall also encompass the time that was not covered with the compulsory insurance in cases when the premiums are paid -- continuing insurance, in cases, under conditions and manners set forth by the general act of the Fund.

2. Seniority calculated with a longer duration

Article 125

Seniority of the insured working in dangerous and unhealthy conditions and the insured who after attaining certain age can not successfully perform his/her professional responsibilities, shall be calculated with a longer duration. The calculation of a longer duration shall depend on

how risky the job was, e.g., the nature of the job. Working places shall be divided into six groups, consequently every 12 months shall be considered to be 13, 14, 15, 16, 17 or 18 months of seniority.

Article 126

Working places where the seniority is calculated as one with the longer duration because of danger shall include the following:

Working places where there is a negative influence on people's health and on the ability to work, despite all relevant regulations for protection are complied with as well as undertaking other measures to eliminate such dangerous influence on health-,

Working places that are dangerous and unhealthy, and are in the vicinity of the origin of such danger during the course of work-,

The work set forth in items I and 2 of this paragraph to be performed from the same employee during his/her full time, considering as a full time spent on work lesser then 24 hours a week, estimated for some of the working places because of the special working conditions.

Working places where the seniority is calculated as the one with longer duration, because the performance of the work is limited by the age to be obtained, can be estimated for some of the working places where because of the nature and the difficulty of that job, the physiological functions of the body are so much reduced that the employee can not successfully perform the same responsibility any longer.

Article 127

In working places where the seniority is calculated with the longer duration, the procedure for increasing the seniority of such working places shall be estimated by the Fund.

The working places for which the seniority is calculated with the longer duration shall be estimated according to the opinion obtained from corresponding expert and scientific organization upon the manger's request.

The working places for which the seniority is calculated with the longer duration, shall be revised by the Fund according to the procedural regulations.

The revision to working place classification shall be finished within 5 years at the most, from the moment the Fund designated such working places.

Article 128

The working places for which seniority is calculated with the longer duration, for persons that are full-time employees and compulsory insured as: insured with 70% lesser working ability ( article 82 paragraphs I and 3 of this law ), war handicap from I to IV category, civil handicap from war from I to IV category, blind persons, persons having muscle diseases, paraplegia, cerebral and child paralysis and multiples scleroses.

Each 12 months, that the insured from paragraph I of this article, spent on work shall be considered to be 15 months of insurance, and the age limit prescribed as a condition for receiving a pension from article 17 shall be reduced for one year on each 5 years spent on that kind of work.

Article 129

The insured from article 119, paragraph I of this law, whose seniority is calculated with longer duration shall, receive more seniority for the time that was effectively spent on work.

An exception, to paragraph I of this article, is that the insured whose seniority is calculated with the longer duration, from article 128 of this law, shall receive more seniority even in cases of part time employment.

Article 130

Seniority with the longer duration shall be calculated from the time that was spent in the army or as an insured of the army of Yugoslavian National Army. There is an exception for the time that the civil person working for Yugoslavian National Army spent on the troops, under conditions defined by the regulations governing retirement and disability insurance of the army insured.

VIII. VOLUNTARY INSURANCE

Article 131

Persons who are not covered by the compulsory retirement and disability insurance shall have the right to voluntarily insure themselves, by paying premiums for them and other members of the family and thereby to be entitled to receive a pension according to the provisions of this law.

Article 132

A compulsory insured shall have the right to receive a higher pension for himself/herself, and the members of their family through payment of premiums for voluntary retirement and disability insurance.

Insured set forth in paragraph I of this article shall receive higher compensation from the day he/she fulfils the right to receive pension on the basis of the voluntary insurance.

The Fund shall further prescribe the conditions and manners for receiving higher pension then the compulsory one. The premiums and the conditions for receiving higher pension shall be regulated by the Fund together with the insured.

VIII. EXERCISE, USE AND LOSS OF RIGHTS

1. Exercise of rights

Article 133

Retirement and Disability Insurance rights shall be exercised by a person, that is covered by insurance according to this law.

The insurance shall be established on the basis of a report for insurance that is corresponding to the regulation on keeping record and submitted by:

1. Employers -- for their employees-,

2. Natural persons -- working for themselves;

3 . Individual agricultural -- for themselves;

4. Republic office for Employment - for unemployed receiving compensation, or on professional training; or other courses; and

5. Payers of the retirement and disability insurance - for persons from article I 1, paragraph 1, items I I and 12 and articles 14 and 15 of this law.

In case, persons from paragraph 2, items 2 and 3 of this article do not submit a request, the attribute of the insured shall be estimated by the Fund, ex officio.

When the employer does not subn-fit a request for insurance, the employee, has a right to ask the Fund to pass decision for assessing the attribute of being insured.

The Fund, with its general act shall closely regulate the attributes of the insured.

A.rticle 134

The procedure to estimate the rights from the retirement and disability insurance shall be commenced on the request of the insured person, i.e., the beneficiary of the pension, and for fulfilment of the right of the family pension and other rights from the members of the family of the insured, e.g., the beneficiary of the pension on the request of the member of the family.

The procedure to assess the disability at the insured shall be commenced on the request of the employer for whom the employee is working, as well as on the request of the doctor who treated him or the doctor's commission.

Together with the request from paragraph 2 of this article, the person shall also submit medical e.g., work and other kinds of documentation, needed to assess the disability.

The insured shall be obliged to participate in the procedure commenced within the meaning of the paragraph 2 of this article.

Article 135

The rights from the retirement and disability insurance shall be exercised in the Fund, when the insured was last covered by the insurance from the Fund.

The Fund shall also be competent, in cases where the exercise of the rights from the retirement and disability insurance originates from International Treaty.

Article 136

The request to exercise rights from the retirement and disability insurance shall be filed with the Fund, i.e., with the employer for compensation set forth in article 54, items 1, 2, and 3 of this law.

The administrative procedure shall apply for the procedures regarding retirement and disability insurance. Procedure on the labor relations shall apply when the rights regarding retirement and disability insurance are fulfilled by the employer.

The Fund e.g., the employer, shall closely regulate the exercise of the rights with special regulation.

Article 137

The changes in the state of disability and physical damages of the insured, can be established in the procedure commenced on the request of the insured.

As an exception from paragraph I of this article, the body to resolve the retirement and disability dispute, has a right, on the initiative of a single doctor, or commission for examination of the working ability, employer or the Fund, to request a second physical examination by the commission for estimation of the labor handicap, for the retained working ability which was the basis for receiving some benefits. This request is initiated only in cases of the change in the health conditions. The reason is to estimate the need and the possibility for better use of the retained working ability.

Article 138

The seniority and the salary, as well as the other factors of importance for receiving and establishing the rights from retirement and disability insurance, shall be estimated on the basis of the imputed information in the central registry regarding the insured and other beneficiaries receiving retirement and disability insurance rights.

The main registry shall be governed by a separate law.

Article 139

When the retirement and disability rights are based on loss of the working ability, the remaining working ability, physical damage, need for help and nursing and working disability as a basis for receiving family pension, shall be estimated on the basis of diagnosis, opinions and examinations conducted by the commission for examination of the working ability.

The comniission, mentioned in paragraph I of this article shall be formed within the Fund.

The diagnosis, opinions and examinations that are made in connection with the working ability, i.e., the remaining working ability which constitutes the basis to receive disability pension, shall be supervised by the commission for examination of the working ability of the Fund.

The Fund shall regulate the composition of the conunission for examination of the working ability from paragraph I of this article, the manner and the procedure for making supervision, set forth in paragraph 2 of this article, and other issues in respect of the Commission for examination of the working ability.

Article 140

The decision for the rights originating from retirement and disability insurance shall be passed by the Fund, within 30 days from the day the request was first filed.

When there is a need to assess a factual situation before passing a decision, the Fund shall pass the decision within 45 days from the date the request was first filed.

As an exception from paragraph I of this law, the decision for receiving a compensation from article 54, articles 1, 2 and 3 of this law shall be authorized by the body in charge of the employers office.

Article 141

The beneficiary of the pension or of the member of the family shall have the right to lodge an appeal against the decision of the Fund or the employer pension with the agency at the second level in charge of the Fund, within 15 days from the date, the decision was received.

When the procedure for examining the disability was governed according to article 134, paragraph 2 of this article, the employer shall also have the right to lodge an appeal.

The appeal set forth in paragraph I of this article shall not cause a delay for the implementation of the decision, except when the appeal is lodged against a decision for the examination of the working disability.

Article 142

Against the decision of the higher body of the Fund, the parties shall have the right to commence the procedure for resolving the administrative disputes, and against the second instance decision of the employer the parties shall have the right to commence the procedure for resolution of the labor disputes.

Article 143

When the final decision is passed, and new evidence is discovered, there is the possibility of introducing the new evidence together with the old evidence or by itself to influence the decision. Such exception can be introduced only from the reasons set forth in the Law on the General Administrative Procedure regulating the renewal of the procedure, but only when the evidence was not introduced during the last procedure.

The renewal of the procedure shall be initiated upon the request of the parties or ex officio.

The renewal of the procedure in cases set forth in paragraph I of this article, shall be initiated not withstanding the time limits set forth in the Law on the General Administrative Procedure.

When the renewal of the procedure was initiated and the procedure was commenced within 5 years from the day the decision was received, the procedure that in that time was prescribed by the law shall be applicable for the renewal of the procedure. When the renewal of the procedure was initiated after this time, the procedure that was valid at the time the request was filed shall be applicable for the renewal of the procedure.

The Law on the General Administrative Procedure shall be applicable during the procedure for the renewal of the procedure in the respect of the retirement and disability insurance rights.

Article 144

The rights established with the decision rendered because of the renewal of the procedure, according to the paragraph 143 of the law, shall be received the first day of the next month, from the day the request for the renewal of the procedure was filed, e.g., after the decision for the renewal of the procedure was rendered ex officio.

Article 145

The final decision on the request of the party or ex officio, can be changed by a new decision, when the final decision inflinges the law or regulation of the Fund and damages the party in the procedure.

When the final decision infringes the law or regulation of the Fund and damages the party in the procedure, the rights granted by the new decision shall be receivable when all the conditions for exercising this kind of right are fulfilled.

2. Exercise and loss of fights'

Article 146

The rights from retirement and disability pension set forth by this law, shall be received and exercised from the date when all the criteria are fulfilled, when the request was filed within 6 months, from the date the conditions are fulfilled, and when the request is filed after this term, for 6 months before.

The right of the pension shall be fulfilled after the insurance has ceased.

As an exception to paragraph I of this article, the right to receive a compensation for assistance and nursing shall be receivable from the day that the request was filed.

Rights received on the basis of remaining working ability and the right to receive compensation because of physical injury shall be received from the day, the criteria were fulfilled, and the rights can be exercised during the insurance period.

Article 147

The pension and other kinds of compensation shall be calculated monthly and paid in advance.

The Fund shall be obliged to deliver all kinds of compensation to the beneficiary living abroad.

The Fund shall deliver all kinds of compensation to the beneficiary living abroad, under the conditions prescribed by this law, international treaty, or reciprocity.

Article 148

Right to work part time, to be assigned, to have a job according to the qualifications, right of continuous education and compensation received, shall cease in a month when the insured or the beneficiary of the right refuses working on suitable working place, pre - qualification or continuing education, leaves the job without reason, refuses to report with the office in charge for registering unemployed, or refuses for secondary examination in the prescribed time, e.g., for the need of nursing and help.

Article 149

The beneficiary of the pension and the compensation for physical injury who is a citizen of a foreign country and who is going to leave Macedonia and come back to his/her native country shall receive compensation in the native country only when the international treaty for payments of the compensation abroad is signed, or when there is reciprocity.

Article 150

The beneficiary of the pension who is a citizen of the Republic of Macedonia who moves a to foreign country, will receive the pension and other kind of compensation, only when there is an international or bilateral treaty. When there is no such treaty, the Fund can only permit, payment of the pension abroad, when the individual indicated a justification for the movement.

Article 151

The beneficiary who receives compensation as set forth in article 6 1, paragraph 3 of this law, shall receive compensation, when he/she has a permanent place of living in the territory of the Republic of Macedonia.

Article 152

The beneficiary who does not receive his/her compensation under articles 149 and 150 of this law, shall receive the pension a month after moving back to Macedonia.

A.rticle 153

The beneficiary of the retirement and disability insurance rights shall be obliged to report all the changes that are important for exercising such rights to the extent that such rights are not later than 30 days from the day the change occurred.

Article 154

The payments of the pensions shall ceased to be paid when the beneficiary of the pension is still working in Macedonia or another country.

Article 155

The right to receive a fa@ly pension shall cease for the members of a family, after changes important for establishing and exercising such right have occurred.

Article 156

Rights established on the basis of remaining working ability and physical injury, can be changed according to the time of the remaining working ability, e.g., the need for help and nursing, e.g., the level of the physical injury.

When the chan es set forth in paragraph I of this article are established on the request of the beneficiary of such right, the right shall cease, from the first day, of the month after the beneficiary filed such a request.

Article 157

When the insured, i.e., the beneficiary of the pension has the right to receive two or more pensions, he/she shall be entitled to receive only one pension according to his/her own choice.

The family pension shall be received as a single pension even in cases when there are more than one co-beneficiaries, only when there is no request as a single person to receive the pension separately,

Article 158

The pension shall be subject to a lien or collection only by one third of the whole sum, and in cases of established rights of alimentation, by the court's decision or with the agreement, by one half

The money relief for physical injufies and reimbursement for domestic nursing and help shall not be subject to collection or lien.

Article 159

The monthly amounts of the pensions and other kinds of reimbursement for the retirement and disability insurance that were not payable because of the insured, additionally shall be payable, but only for three years to the most, starting from the day when the insured file his/her request after he/her ceases his/her employment.

IX. FUND FOR TBE RETIREMENT AND DISABILITY INSURANCE

1. Fund

Article 160

The Fund shall:

Implement the development policy in the area of the retirement and disability insurance,

Follow and analyze the conditions in the area of the retirement and disability insurance,

Suggest measures for enhancement of the system of retirement and disability insurance,

Undertake measures for efficient use of the resources needed for securing of the rights from the retirement and disability insurance,

Adopt an annual report for the work of expert's unit of the Fund,

Enact Articles of Incorporation of the Fund and other regulations closely regulating the rights of the retirement and disability insurance,

Enact a budget of the Fund and adopt a final financial statement of the Fund,

Pass regulations on formation and structure of the expert's unit of the Funds, and the needed resources for such office to function,

Regulate rights, obligations and responsibilities of the board of managers, the general manager and the expert's unit of the Fund,

Implement voluntary insurance,

Decide the first and second instance cases for the rights from the retirement and disability insurance,

Implement international treaties and accords from the area of the retirement and disability insurance,

Perform other duties laid down by the law, Articles of Incorporation and other regulations of the Fund.

Article 161

The main governing bodies of the Fund are the Board and the Manager.

Article 162

The body in charge of governing the Fund is the Board.

The Board shall have 9 members appointed by the Macedonian government, for 4 year terms.

The Board shall elect the president from its members for a 4 year term.

The Board of the Fund shall submit its report to the Macedonian government at least once a year.

Article 163

The Board of the Fund shall:

Enact Articles of Incorporation and other regulations of the Fund,

Enact projects and work-plans,

Enact regulations for the structure and daily operation of the Fund and other regulations for organization of work in the Fund,

Enact a budget of the Fund and final financial statement of the Fund,

Allocate resources of the Fund,

Decide on spending of the resources,

Supervise the voluntary insurance,

Follow the implementation of the international treaties and accords from the area of the retirement and disability insurance,

Supervise the regular payments of the premiums of the retirement and disability insurance,

Examine the issues, reports, information and other material, connected with the conditions

and problems from the retirement and disability insurance, and other things for which the Fund is in charge.

Appoint and dismiss the Manager of the Fund,

Undertake measures to secure and provide functioning of the informational system in the fund,

Establish commissions and other working bodies,

Decide upon other things set forth by law and the Articles of Incorporation.

Article 164

The Fund shall have its Manager, appointed by the Board, with prior public notice of vacancy.

The Manger shall fulfill conditions prescribed by the Articles of Incorporation of the Fund.

The government of the Republic of Macedonia shall give its consent for appointment of the Manager.

The Manager's term of office shall be for four years.

After four years of office the same person can be reappointed as Manager of the Fund.

The Manger shall represent the Fund.

Article 165

The Manger of the Fund within the rights and responsibilities estimated in this law shall:

Organize and secure lawful and efficient execution of the duties within the Fund's authority and shall be responsible for the lawful daily operation of the Fund,

Propose to the Board of the Fund issues to discuss and to enact decisions within its competence,

Implement enacted decisions, directions and conclusions of the Board of the Fund.

Propose to the Board, reports and analysis for the issues from the retirement and disability insurance area and give suggestions how to resolve such issues upon which the Board is in charge,

Organize and coordinate the daily work of the Fund's employees and decide upon their rights and obligations originating from labor relations, in consistency with the laws and other regulations originating from labor relations and collective agreements of the syndicate of workers,

Execute other duties, which the law, the Articles of Incorporation and other acts within his/her competence.

Article 166

When no one applies for the vacancy of Manager of the Fund or when the Board does not appoint any of the proposed candidates, a new public notice for the vacancy shall be issued.

When the Manager of the Fund is not appointed, the Board shall appoint the executor of the duties, without giving public notice for vacancy.

The executor of the duties of the Manager of the Fund shall have the same rights and

responsibilities as the Manager of the Fund.

The executor of the duties of the Manager of the Fund can execute the duties until a new Manager is appointed, but not for longer than 6 months from the day he/she was appointed.

When the Manager of the Fund is not appointed in the time prescribed in paragraph 4 of this article, the Government of the Republic of Macedonia shall appoint the executor of the duties of the Manager of the Fund, but not for longer than 6 months.

Article 167

The Manager of the Fund shall be dismissed prior to time he/she was appointed in following cases:

On his/her request,

In cases set forth in Labor regulations, for cessation of the labor relation,

When he/she does not act according to law, Articles of Incorporation, and regulations of the Fund, or fails to implement Board's decisions or acts contrary to such decisions,

When his/her unconscientious work damages the Fund or he/she neglects to execute the duties and thus damages the daily operations of the Fund,

When he/she impedes or by other way makes it difficult for the insured to fulfil their rights originating from the retirement and disability insurance,

When he/she works contrary to the law.

The Board of the Fund before passing the decision for dismissal shall be obliged to inform the manager about the reasons for dismissal and give the Manager the possibility to respond.

Against the decision for dismissal of the Manager, the person has a right to seek judicial review, in cases he/she thinks that the disciplinary procedure was violated which could influence the decision, or when there are no reasons prescribed by law and Articles of Incorporation for discharge of the duties.

Article 168

Managing, financial, expert, administrative and other duties in connection with the retirement and disability insurance, determined by the law and the Articles of Incorporation shall be executed by the employees in the Fund.

For execution of the duties from the paragraph I of this article, the Fund shall establish a single expert's office for the district units in the municipalities.

Rights and duties originating from the employment relationship, shall be exercised by the employees in the expert's office in consistency with the labor regulations and collective contracts with the syndicate.

Execution of specific administrative duties in the administrative procedure for fulfilment of the rights originating from the retirement and disability insurance, in consistency with the law, shall have a public authorization attribute which shall be executed by the expert's office of the Fund.

Article 169

The Fund shall have Articles of Incorporation.

The Articles of Incorporation shall specifically regulate:

The organization and the manner of work the daily operations of the Fund,

The manner of fulfilment of the fights originating from the retirement and disability insurance in consistency with the law.

The rights, duties and obligations of the governing bodies in the Fund,

The representation of the Fund,

The release of public information in regard of daily work of the Fund,

The manner of organization and the execution of the expert-administrative and other kind of duties in daily execution of duties originating from the retirement and disability insurance,

The procedures for enactment of regulations,

And other issues of importance for the daily operations of the Fund.

The consent for the Fund's Articles of Incorporation shall be given by the Government of the Republic of Macedonia.

Article 170

The Ministry of Labor and Social Policy shall supervise the work and the legality of the daily operations of the Fund.

The Ministry of Labor and Social Policy can cease the implementation of the Fund's regulation, when it is inconsistent with this law, or with the constitution until the Constitutional Court reaches its decision.

X. PROVIDENCE OF THE RESOURCES FOR RETIREMENT

AND DISABI]LITY INSURANCE

Article 171

Resources for fulfilment of the retirement and disability insurance rights in the Fund shall be provided by the employers and insured persons according to this law and the need estimated by the retirement and disability insurance.

Article 172

Resources that are needed to fulfil the retirement and disability insurance rights shall be provided from:

Payment of premiums from the salaries of the employees and from the profit, as well as from the income earned by a natural persons or agricultural earned by his activity;

Premiums based on the voluntary retirement and disability insurance;

The budget of the Republic of Macedonia

From the incomes of the Retirement and Disability Insurance Fund of the Former

Yugoslavian Republics, under which a large portion of the seniority of some insured was fulfilled;

From the Fund's property

Other incomes.

Incomes of the Fund shall encompass also the resources fulfilled on the basis of the transformation of the social capital according to this law.

Article 173

Premiums for the Retirement and Disability Insurance shall be planned in such a manner as to provide fulfilment of all obligations of the Fund and for putting aside from all premium and other Fund's incomes.

Article 174

Rate of the premiums for Retirement and Disability Insurance shall be estimated by the Parliament of the Republic of Macedonia under suggestion of the Government of the Republic of Macedonia.

The rates of the premiums for the Retirement and Disability Insurance shall be estimated for the same period as for estimation of the budget of the republic of Macedonia.

Article 175

Premiums paid for the retirement and disability insurance are as follow:

Premiums paid from the salary, or from compensations in case of temporary working disability;

Premiums paid from the basis of the insurance;

Premiums paid for voluntary insurance;

Premiums paid from the profit for the insured whose seniority is calculated with the longer duration;

Premiums paid from the insured covering specific cases.

The insured working in the army, in the Ministry of Foreign Affairs, in the penitentiaries and in the foster homes, shall be paid premiums from the budget of the Republic of Macedonia.

Article 176

Amounts collected from the Retirement and Disability Insurance shall be used for purposes determined by the law as follows:

Payment of pensions and other kinds of compensation originating from retirement and disability insurance.

Premiums of health insurance.

Compensations of the seniority when the premiums for such seniority were paid into the funds of other republics of Former Yugoslavia.

Working expenses of the Fund and for execution of the administrative, technical and other duties necessary for the daily operation of the Fund.

Resources for the retirement and disability insurance can be used for the enhancement of the protection for the handicapped and protection of the standard of the beneficiary of the

pensions, but only in cases when the obligations of the paragraph I of this article are fulfilled.

Premium paid out from the salary shall be estimated as a single proportional rate for similar insurance cases, based on the average

XI. CONDENSATION OF DAMAGES

Article 186

A person that received money from the Fund without having right to receive that kind of money, shall give back money to the Fund and compensate all the damages as follows:

When on the basis of the incorrect information known by the insured or should have been aware of, or on any other illegal manner he received any income from the Fund that he was not entitled to or the higher amount that he was entitled to receive.

In case he/she earned money because he/she did not inform the Fund about new circumstances that could cease the fulfilment of the right or decrease the extent of right, and he/she was aware or should have been aware of such circumstances.

Person receiving higher amount from the amount that he was entitled to with the decision or any other document, shall be obliged to return the difference that he was not entitled to, independently from his guilt.

Article 187

Employers, self-insured, enterprises for insurance of the persons and property and legal and natural persons, shall be obliged to recover the damages sustained by the Fund, that they are responsible for, in accordance with the regulations prescribing the compensation for damages, including the responsibility for injuries resulting from the use of illegal resources and or omissions or comntitted by dangerous resources.

Article 188

When the damage resulted because of money received on the basis of disability, physical injury, or death of the insured resulted from the illegal act or omission, there is obligation for compensation of damages , no matter that the risk of disability, physical injury or death are covered by the Retirement and Disability Insurance.

Article 189

Compensation of the damage covered by articles 186 and 188 of this law is encompassing all amounts of money paid on the basis of the recognized right from the retirement and disability insurance, however the amounts of the retirement and disability insurance and the length of the seniority of the insured shall not be taken into consideration.

The request to recover damages shall encompass the whole amount of the damage and the portion of the damage calculated for period of time, that already passed.

When the damage consisted of Fund's obligation to pay money on the temporary basis, the Fund shall be entitled to compensate the whole sum of the damage sustained. This amount shall be calculated according to pension received, money relieves for physical damages and money relief for help and nursing according to possible duration of that kind of rights.

Article 190

Compensation of the damages, sustained by the Fund , i.e., return of the amount of pensions that were illegal and irregular paid and of the other amounts paid on the basis of the retirement and disability insurance, shall be completed according to the Law on Obligations.

XII. PUNITIVE PROVISIONS

Article 191

The employer shall have to pay a fine ranging from 20 to 60 salaries in case he/she:

Hinders fulfilment and enjoyment of the rights on the basis of remained working ability article 61, paragraph 1);

Fails to submit request for insuring his/her employees ( article 133

Pays out the salary, but fails to pay retirement and disability insurance premiums ( articles 182 and 183 );

Fails to pass decisions for the rights covering travel and food expenses ( article 54 lines 1, 2 and 3 )

Hinders the Fund in supervising the calculations and payment of the premiums ( Article 185 ).

The Manager of the employer shall be punished by paying fines ranging from 2 to IO salaries, for the commitment of the offence specified in paragraph I of this article.

Natural persons performing activities, shall be punished by paying fines ranging from 2 to 12 salaries for the commitment of the offence specified in paragraph I of this article.

Article 192

A natural person who is supposed to file an insurance request for himself shall be punished by paying a fine ranging from 2 to IO salaries, in case he failed to submit a request or to submit within the prescribed period. Beneficiary of the retirement and disability insurance shall be punished with the same punishment in case he failed to report relevant changes for the extent and fulfilment of the fight ( articles 133 and 153 ).

XIII. TRANSITIONAL AND FINAL PROVISIONS

Article 193

An insured who fulfilled his/her fights from the retirement and disability insurance before this law was enacted, shall continue to benefit from such fight after the enactment of this law, to the extent and amount estimated in the provisions of this law.

As an exception to paragraph I of this article, the addition to the pension shall cease to exist.

Article 194

The procedure for the fulfilment of these fights, filed by private party or ex officio and commenced before this law came into force, shall be carried on according to regulations, enforceable in that time, in case the employment relation was ceased before this law came into power.

Article 195

Persons who according to this law are not covered by the insurance, but according to the old law, were covered by the insurance, as well as the members of their families and the members of the famflies of the insured by the previous law, may fulfill their rights of retirement and disability pension in accordance with this law.

Article 196

Pensions of World War 11 veterans, the Movement for national liberation in Greece, the Movement for the National Liberation in Greece from the Aegean part of Macedonia and their families, received under the " Law on Basic Retirement and Disability Insurance ", " Law on the War Heros " and " Law on Retirement and Disability Insurance " before this law came into force, shall continue to fulfil their rights granted by enumerated laws, but the extent of the rights and the amount, shall not be higher than the extent and amount estimated by this law.

Article 197

The insured who used to work in the Army, and were entitled to a pension according to the old Law on the Retirement and Disability Insurance, shall continue to enjoy the same rights to the extent and the amount, estimated by the old law. The highest pension, however, shall not be higher then the one estimated by this law.

Article 198

Amounts and other incomes payable from the paragraph 197, of this law shall be paid from the budget of the Republic of Macedonia.

Article 199

Payable amounts covering benefits in accordance with Article 196 shall be paid from the budget of the Republic of Macedonia.

Article 200

The beneficiaries receiving minimal retirement and family pension in accordance with the Law on the Retirement for the Agricultural and the Law on Retirement and Disability Insurance, shall enjoy the same rights under this law.

Article 201

After the beneficiary of the minimum retirements laid out by paragraph 200 of this law, has passed away, his spouse may be entitled to receive a family pension, if the spouse was 65 years old ( for men ), or 60 years old ( for women ), or if the beneficiary was a World War II veteran.

Article 202

Payable amounts from the articles 200 and 201 shall be paid from the budget of the Republic of Macedonia.