Bulgarian Labor Minister Claims No Delay of Pension Reform

Politics » DOMESTIC | July 28, 2010, Wednesday // 17:03
Bulgaria: Bulgarian Labor Minister Claims No Delay of Pension Reform Bulgaria's Labor Minister Totyu Mladenov has announced that the changes in the pension reform will be submitted next week and will be voted in September. Photo by BGNES

The Bulgarian Labor Minister Totyu Mladenov has announced that the pension reform will not be postponed due to the “dramatic situation” in the National Social Security Institute.

Mladenov participated in a meeting Wednesday with the head of the Institute, Hristina Mitreva, the executive director of the National Revenue Agency, Krasimir Stefanov, employers and trade unions.

“At the moment the deficit in the Institute is BGN 206 M, due to the unpaid insurances for the first half of 2010,” Mladenov said, noting that the macro framework envisions BGN 50 M smaller deficit for 2011, more than BGN 300 M less for 2012 and more than BGN 570 M for 2013.

The minister has also announced that the changes will be submitted to the Council of Ministers next week and that the Parliament will vote them in September.

He has also stated that the Finance Ministry will propose a packet of measures for increasing the revenue of the budget of the National Social Security Institute.

According to Mladenov, the main difference between employers and trade unions will be the size of the insurance fees in the future.

Before the meeting, the employers have stated that they have negotiated with PM Boyko Borisov that the insurances will not be raised and that not paying will not be considered a crime, only the hiding of insurances.

The trade unions have announced their agreement that the insurances should be raised from next year. However, they have stated that they will not step back from their request that the rasie should be smooth.

The employees have demanded a simultaneous smooth increase of the necessary years of service for retirement and the necessary retirement age because, in their words, if only the years increase, this would be a discrimination towards the more qualified employees, which are the ones with higher degree of education.

They have also stated that there should be measure for analog payment in sectors, as well as for decreasing the options for cash payments.

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Tags: Totyu Mladenov, pension reform, National Social Security Institute, National Revenue Agency, trade unions, employers

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