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They launch European pensions for Bulgarians




The contributions for the European pension will be made in BGN. PHOTO: 24 hours

EU voluntary funds will be able to operate on the Bulgarian market

The European pension will be inherited

Even a 16-year-old can sign a contract for such a product, but will start receiving his money when he reaches the appropriate age.

Funds from other EU countries can enter the market in Bulgaria, collect social security contributions and pay pensions in our country.

This is provided by changes in the Social Security Code, which have been proposed by the government for public discussion.

With the new texts

the pan-European pension product is introduced in Bulgaria

It is known as the European pension and was adopted 2 years ago. The product allows the transfer of insurance and pensions from one EU country to another when moving.

Pan-European pensions will be offered in our country

on a voluntary basis,

similar to the funds for voluntary pension insurance, which still exist in the Bulgarian legislation. However, separate funds will be opened for the European pension, according to the changes in the Social Security Code.

The pension products offered by these funds may differ from each other and then they will be divided into sub-funds. In this way, people will be able to participate in investment management by choosing riskier and more profitable options or safer ones, but with lower returns.

A restriction has been introduced that

each insured person can have only one European pension account

However, it will be possible to open sub-accounts in it and so one part of the insurance contributions will be invested safely, and another – for higher profitability. Accounts will also be made when a person changes residence.

Anyone over the age of 16 can sign a European pension contract, according to the bill. And the right to a European pension is acquired when you reach the normal retirement age. However, they will be able to

to use advance payments in case of disability

The European pension will be inherited in case of premature death of the insured.

The money paid as insurance for a European pension cannot be sequestered in case of enforcement by a bailiff, explicitly states the changes in the code.

The European pension insurance accounts will be personal and can be transferred both between different companies in Bulgaria and to funds in another EU country. The project envisages the transfer of the European pension account to be done once every 5 years.

European pensions in Bulgaria will be able to offer both the licensed in the country pension insurance companies, which currently offer products for the so-called. second pension and voluntary insurance, as well as companies from other EU countries, which receive the right to open in Bulgaria only a fund for a pan-European pension product. In this case, however, the fund must offer a cross-border service and the insured person must be able to transfer his funds.

Similar to the rules for the Bulgarian second and third pensions, the European ones will be able to

to be paid either for life or for an agreed period of months

Bulgarian pension insurance companies are still unsure whether to offer a pan-European pension scheme, a 24 Hours study found. Due to the lack of a legal basis approved by the parliament at this stage there is no expressed interest from companies from other EU countries to enter this market in Bulgaria.

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