site.btaPlans to Increase Pension Contributions in the Medium Term Possible, Social Committee Chair Says

GERB-UDF Deputy Floor Leader and Parliament's Committee on Labor and Social Policy Chair Denitsa Sacheva responded to journalist’s questions in the corridors of the National Assembly on Tuesday. When asked about the MPs proposals for changes aimed at improving the pension model, Sacheva said that the social security contributions for pensions will probably have to be increased in the medium term “because we cannot expect to get more and more services and higher pensions with the same contribution.”

“A Roadmap has not been worked out, it will have to be worked out, the proposition is to entrust the experts, institutions, the Ministries of Labour and Finance, the National Social Security Institute to work it out within the next six months and present it to the National Assembly,” Sacheva said.

A draft resolution was submitted to Parliament on April 21 by MPs from GERB, BSP - United Left, and There Is Such a People, which obliges the Ministry of Labour and Social Policy, the Ministry of Finance, the National Social Security Institute, the Financial Supervision Commission and the National Revenue Agency to work out a roadmap for improving the pension model within the next six months.

According to the Chair of the Committee on Labour and Social Policy, “the decisions taken must be connected to how to proceed with the social security contributions in the medium term.” Decisions have to be made on the retirement age as well: “right now there are no plans to increase it,” Sacheva said. She stressed that the fact that more and more people who have reached retirement want to continue working should be taken into consideration.

“The pension model has still not been fulfilled in its entirety, because only 25 years have passed since it was introduced, and at least 40 years are needed to see the effects. But at the same time, enough time has passed, there are new tendencies connected to the aging of the population, for example, fewer people join the labour market. In 5-6 years around 50,000 people will join while around 100,000 – 110,000 people will leave, which is a significant disbalance that is related to the financial instability of the system and more adequate pensions,” Sacheva said.