Bulgaria’s transition to the euro, planned for January 1, 2026, will include the automatic conversion of personal savings held in the second and third pension pillars. These savings will be recalculated using the fixed exchange rate of 1.95583 leva for 1 euro, ensuring that no value is lost during the process. The conversion will not involve any fees, deductions, or additional paperwork for insured individuals, according to a detailed Q&A guide published by the Bulgarian Association of Supplementary Pension Insurance Companies (BADDPO).

The Chairperson of BADDPO, Evelina Miltenova, emphasized that the procedure will be automatic, carried out under the legal framework, and entirely in the interest of citizens. Individuals will not be required to sign new contracts or submit any forms. Pension funds, which currently manage over BGN 27 billion in savings for more than five million Bulgarians, remain stable and secure, she noted.

Importantly, the change in currency will not affect the legal rights of the insured. All accounts will continue to be personal and inheritable, and the current system for managing accounts, calculating pensions, and processing payments will remain unchanged. There will be no amendments to the terms or processes related to the Lifetime Pension Payment Fund (FPPF) or the Deferred Payment Fund (DFPF). Inheritance rights and entitlements will be preserved.

The recalculation will apply to all shares, contributions, and existing pension contracts. Once the euro is introduced, pension accounts will display values in euros instead of leva. For instance, a balance of 10,000 leva would be converted into 5,112.92 euros. The value of one pension unit in euros will be determined by taking the net asset value of the pension fund in leva at the end of the business day prior to the euro’s introduction, converting it into euros based on the official exchange rate, and dividing by the total number of units in the fund. This figure will be rounded to five decimal places.

Each account holder’s balance will be recalculated by multiplying the number of units by the new unit value in euros. The final amount will be rounded to two decimal places. Following the euro’s introduction, the unit value will continue to be calculated and published in euros. All pension contributions made after January 1, 2026, will be paid in euros, while those relating to earlier periods will be converted by the National Revenue Agency (NRA) before being forwarded to the respective pension fund.

The conversion process will be seamless for insured persons. They will not need to take any steps, sign any documents, or renegotiate their agreements with pension companies. All existing leva amounts will be legally recognized as euros at the fixed exchange rate, without altering any existing conditions.