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Retirees take as much as they worked …

Current for this change in pensions, ie. I do not think that the current indexation needs to be further regulated by a legal change. It is quite fair because it increases the pension of each pensioner according to his contribution to the pension system while he worked.

“Legislative changes should not break the link between a person’s contribution to the pension system and what he or she uses afterwards.” This was said by Iskren Arabadjiev, chairman of the social committee in parliament and an MP from “We continue the change”.

He specified that indeed some of the pensioners receive a smaller pension compared to December, 2021, which is due to the way pensions are recalculated, Actualno.com writes.

Arabadjiev confirmed – the change (indexation) in pensions is on average 12.5%, but due to a three-year period of GERB’s rule, when the indexation was not according to the so-called Swiss rule has a different weight due to the size of the internship.

However, Lyubomira Yazadjieva, director of the Pensions Directorate at the National Social Security Institute, has already said the government is preparing compensation. One of the possible options is to grant individual allowances for each of the injured pensioners.

The supplements to the pensions of all pensioners, which initially amounted to BGN 50 per month, but later increased to BGN 120, fall to BGN 60 this year. The additional amounts are expected to be received by June, but it is unclear what will happen after that date. In this way, many retirees will feel disadvantaged, as the reduction of benefits will erase the feeling of increasing pensions. For example, if a pensioner received a pension of BGN 450 last year and a supplement of BGN 120, then the monthly amount reached BGN 570. After the recalculation of the pension with the new higher weight for real insurance length of service, the pension should jump by about BGN 56 to BGN 506, if we assume that the increase is by 12.5%. With the supplement of BGN 60, the pension increases to BGN 566, which is practically a lower amount than the BGN 570 received last year. At the same time, if the received pension was relatively high for the Bulgarian reality, for example BGN 1,000, after the increase the amount will jump by about BGN 125 to BGN 1,125. With the supplement of BGN 60, the amount increases to BGN 1,185, compared to BGN 1,120 received last year with the high supplement of BGN 120.

Asked whether the Swiss rule was correctly removed during the last GERB rule (2017-2019), Arabadjiev said that there would be a discussion on how to change and fix the rules so that it would be best for pensioners. That is, in the long run, what exactly is the method of indexing.

It became clear from his words that the ruling coalition aimed to complete an analysis of the pension system by the end of June. On its basis, such changes should be made in it that it can be self-sustaining. We remind you that in Bulgaria the system is in solidarity – in practice this means that the taxes and social security contributions paid by employees now go to pay the pensions of current retirees. When current workers retire, future workers will provide their pensions.


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