Bulgaria: After Recalculations, Pensions have not been Lowered, only the Covid Supplement
As a result of the recalculation, there is no pensioner in January with a lower base pension than in December, said the Minister of Labor and Social Policy Georgi Gokov at a hearing in parliament.
The hearing is at the request of GERB-SDS: “how many pensioners and for what reasons will they receive a reduction in their income compared to the last months of 2021”.
This problem is a consequence of decisions of the 46th National Assembly, without qualifying them as populist, but only as decisions that led to the feeling of an unfair approach in determining pensions, Gokov commented.
The pension for January is not less than the one in December, the minister said. He pointed out that this applies to pensions for employment - pensions for length of service and age and disability, as well as social pensions for old age and disability, pensions for military and civil disability, and personal pensions.
The amounts of the pensions of all pensioners have been increased since December 25, 2021, as the average increase of the paid amount of the pension is 12.9 percent and corresponds to an average increase of BGN 61 and 25 cents. This refers to 2 million and 47 200 retirees. The only exception is for 945 pensioners, for whom there is either no change or a reduction in the amount of the pension, said Georgi Gokov. According to him, these are pensions for which there is incorrect information and have not been recalculated at this stage; who have changed the type of pension received - for example, they were moved to a lower group of disability and incapacity for work; and those for which an official order to change the amount of the pension has entered into force.
Compared to December 2021, in January 2022, 1,068,100 pensioners received a smaller total amount of pension and the additional amount to it - covid supplement, the minister said. He pointed out that the reason is primarily in the fact that in December the additional amount paid to the pension was BGN 120, while in January 2022 it was BGN 60. There is no reduction in any pension, there is an increase in all pensions, Bulgarians are misled by the covid supplement, commented Georgi Gokov.
The new way of determining the amount of pensions after December 25, 2021, and the recalculation of pensions granted before that date has an impact on the pensions of the so-called category workers, for whom there is a difference between the length of service in calendar time and the total converted length of service, Gokov explained. On this basis, when recalculating the pensions of persons who have insurance experience of the first and second category of work, the percentage increase in the pension is less than the announced average increase of 12.5 percent, said the Minister.
The Minister pointed out that people whose income is lower in January than in December will be compensated, and the first payments will be made with the pensions for February. He pointed out that BGN 104 million will be needed in six months and added that the funds are available.
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