site.btaIndustry Organizations Support Amendments to Social Insurance Code in Letter to President

In a joint position sent to President Iliana Iotova on Monday, seven industry organizations expressed their "strong support" for the bill amending and supplementing the Social Insurance Code, adopted at second reading on March 5.

The document is signed by representatives of the Bulgarian Association of Supplementary Pension Security Companies, the Bulgarian Industrial Capital Association, the Bulgarian Industrial Association, the Bulgarian Association of Asset Management Companies, the Bulgarian Association of Licensed Investment Intermediaries, the Bulgarian Private Equity and Venture Capital Association, and the Bulgarian Entrepreneurial Association.

According to the organizations, the approved amendments are in the interest of more than five million insured persons in capital pension funds. They state that the changes do not limit the rights of insured persons and that the funds in individual accounts remain personal, legally protected and inheritable.

The amendments introduce the so-called multi-fund model, allowing insured persons to choose an investment profile according to their risk preferences and time horizon. The organizations say the changes are a natural evolution of the three-pillar pension model and aim to provide higher long-term returns and higher replacement income upon retirement.

The bill also provides for the possibility of investing up to 10% of pension fund assets in public infrastructure projects.

Trade union organizations have expressed a different position. Earlier this month, Podkrepa Confederation of Labour President Dimitar Manolov said the trade union had asked President Iotova to veto the amendments introducing the multi-fund model in supplementary pension insurance.