To claim that higher social security contributions mean more pension rights for future pensioners is complete nonsense. This was stated in the program "ReVizia" on NOVA NEWS by the former Minister of Labor and Social Policy in the NMSS government, Lydia Shouleva. She commented on the social system and pensions and responded to claims by the resigned government that the increase in social security contributions proposed in the first draft budget means more rights.
"I must tell you that the pension is determined by two parameters - income and length of service. The size depends on this. People who are now pensioners used to pay 37% insurance, now it is 19%. But they will not receive a pension that is two or three times higher. This is absolute nonsense and it is a shame to claim it", she stressed.
According to her, reforms in the system must be made, but she also stated that its complete autonomy is impossible.
"This system - the solidarity pillar, whatever reforms are made, and they must be made, will not change much. We will always pay taxes into the system, it will never be able to be financed solely by social security contributions," added Shuleva.
According to her, the solution for people who are now entering the labor market is private funds.
► Just a few days ago, the Ministry of Finance proposed amendments to the Social Security Code, according to which the so-called multi-funds are introduced. What does this mean?
"The solution is to allow pension funds to actively manage people's money so that they can generate higher returns. Now investments are made very timidly and with a very low return. The social security contributions of young people who are starting to contribute now will be actively managed and with a higher return. Each of them will have the right to choose from three funds - each with a different management method. But if it decides not to choose, the law provides for the softest investment, "added Shuleva.
► The budget that the street stopped
"The circus spectacle "Bulgaria adopts first budget in euros" ended in failure - we will use the texts from this year with slight, cosmetic changes and some technical improvements. We will enter the new year, already using the euro and as members of the largest currency union in the world as a country whose political elite, ruling majority and executive branch have shown an absolute inability to fulfill their obligations imposed by the Constitution. Choosing to conduct a procedure bordering on farce, to conduct not debates, but greasy, muddy and peasant struggles. The country's budget has become a hostage to the personal ambitions of a man who does not even participate - neither personally nor as a party leader - in the official majority, and this same majority chose to defend indefensible decisions from the television studios, the podiums in parliament and from the benches in the National Assembly. Few truths were spoken, many lies were told, we heard too much unnecessary noise", the former minister added.
"The draft budget proposed at first reading was the worst ever proposed in our recent history, and its goal was completely clear to anyone who wanted to see it - to take from you - the working Bulgarian citizens, to take from you - the enterprising business owners, to take from you - the people who create and add value, and to give to them - the people whose salaries, careers and lives depend on them - the political leaders of several parties, presenting the interest of "the people" as the interest of their people only. This proposed budget blurred the dividing line between those working in the private and public sectors, declared war on anyone who wants to earn honestly and honorably, relying on their labor, and categorically stated "your money is the money that we will use to make us well". But then the unthinkable happened - you said "No". Clear and clear, simply and loudly, so loudly that even they were scared. The fins of the budget leviathan were folded, we waited for a new one," she also said.
"And what did we see - the wingspan of this same leviathan was left for next year. Nothing less, nothing more. More of the same, but with a delayed effect. The state body, stuffing the results of your labor into its insatiable maw, was determined to drag the country's future into the netherworld. In our case, the netherworld has its own names - debts and deficits. Ladies and gentlemen, the fact that it didn't happen this time doesn't mean that they won't try again. That they won't try again and again and again. They have no other choice - the spending llama needs food, and food in a country is produced only by citizens and businesses,", concluded Shuleva.