PROPOSAL FOR ESTABLISHMENT OF A SPECIALIZED FUND FOR RAISING MINIMUM PENSIONS

The Bulgarian Industrial Association continues to assert its position that the actions for targeted increase of the pension rates, including the minimum amount for certain groups, grossly violates the principle of organization and functioning of the social security system. The adopted policy is ruining the fragile trust in the social security system by entrusting it with the resolution of certain issues, which require the use of lacking financial resources and opportunities.

We believe that the established practice of isolated consideration and solving of individual issues is one of the main reasons for the unsustainable financial situation, the lack of attractiveness of the pension system for insured people and insurers and the inadequate amount of pensions.

The BIA, while maintaining its position, suggests:

1. The resources needed to finance the increase of minimum pension should be allocated to a separate fund, which would be financed with the funds from the Republican budget. The Social Security System’s budget should not be a source of funds for such increases in the amount of pensions. This activity should be funded in such a way that it has the character of social assistance.

2. Those persons, who will receive an increased pension from this fund must declare that they have no other source of income. Such a practice exists and its justice has been proven.

The BIA expects greater future consistency in the government’s actions with the social partners to ensure consensus in achieving financial sustainability and stability of the social security system and is ready to propose additional standpoints and opinions for increasing the efficiency of the pension and social security system.