Seven branch organizations express "their categorical support" for the draft law on amendments and additions to the Social Security Code (SSC) adopted on March 5 on second reading in the National Assembly in a joint position to President Iliana Iotova.
Those who have signed the document, received today at the BTA's email, are representatives of the Bulgarian Association of Supplementary Pension Insurance Companies (BADDP); Association of Industrial Capital in Bulgaria (AICB); Bulgarian Chamber of Commerce and Industry (BCCI); Bulgarian Association of Managing Companies (BAMC); Bulgarian Association of Licensed Investment Intermediaries (BALIP); Bulgarian Association for Equity and Venture Investing and the Bulgarian Entrepreneurial Association.
"Our conviction is that the approved texts are entirely in the interest of all over 5 million insured persons in the capital pension funds," the seven organizations state and add: "There is not a single provision in the SSC amendments that restricts the rights or creates less favorable conditions for the insured persons. The funds in the individual accounts remain personal, protected by law and inheritable".
According to them, the changes modernize the way the insured's funds are managed, creating conditions for higher long-term returns and a higher replacement income upon retirement, as well as the right of the insured to choose the investment profile, according to their understanding of risk and time horizon with respect to their age.
The position also recalls the existence of an expert consensus around the introduction of the so-called multifunds.
Regarding the criticisms of the reform in the pension insurance model, the representatives of the seven branch organizations state that they do not reflect the real logic of the development of the pension system.
"We are categorical in our position that the changes in the SSC are not a hasty experiment, but a natural evolution in the development of the three-pillar pension model after more than two decades of accumulated practical experience," the document states, defining the development of the social security model as strategic, in view of the unfavorable demographic trends in Bulgaria and the need to ensure adequate future pensions.
The representatives of the branch organizations defend the adopted changes also because of the conditions being created for the development of the Bulgarian capital market, allowing better diversification of the investments of the pension funds, as the bill provides for the possibility of up to 10 percent of the assets of the funds to be invested in public infrastructure projects, including in areas such as educational, social, residential, cultural, water and sewerage, digital, railway, road and port infrastructure.
"We are convinced that the proposed amendments represent a balanced, carefully prepared and strategically necessary modernization of the pension system, aimed at better returns, more choice for the insured persons, lower management costs and more sustainable capital pension pillars," the branch organizations summarize their support in their joint position.
It differs from that of trade union organizations. The President of the Confederation of Labour (CL) "Support" Dimitar Manolov announced earlier this month that the trade union had sent a proposal to President Iliana Iotova to veto the second reading amendments to the Social Security Code (SSC), which introduce the multi-fund model in supplementary pension insurance. I am not optimistic, but we follow our long-standing position on the subject, he announced at a press conference on the subject, the day after the MPs voted on the final amendments to the SSC, regulating the introduction of the multi-fund model in supplementary pension insurance. The texts provide that within a period of 30 November this year the management bodies of the pension insurance companies adopt decisions to create sub-funds in the universal pension funds managed by them.