The Minister of Labor and Social Policy Natalia Efremova stated on bTV that the pension system can become more sustainable and stable, but emphasized that this will not be done by reducing social payments.
Regarding the financing of pensions and the growing state debt, Efremova pointed out that the definition that pensions are paid through debt is not entirely correct.
Social payments, when we talk about pensions, are exceptionally covered by debt. In principle, this definition is not entirely correct, since the first pillar of the pension system is cost-effective. It is not possible in practice, given the demographic characteristics of the Bulgarian population, for 100% of the insurance to cover the entire fund necessary for the payment of pensions,“ she said.
According to her, one of the main tasks will be to gradually transfer payments that are not typical of the insurance system to the social system.
“First of all, it is very important that all payments that are not typical of the insurance system are not part of it. There are many that should be paid by the social system,“ the minister explained.
As an example, she pointed to the COVID supplements to pensions.
“The so-called COVID supplement is essentially a social payment, it is in no way part of people's contributions when they were insured. It should not be part of the pension formula“, said Efremova.
According to her, the same applies to social pensions.
“Social pensions, for example for old age, by their very nature do not have an insurance contribution from the person. There is no problem with them continuing to be provided to people, but they should be provided by the social system“, she said.
The minister was categorical that social payments will not be reduced.
“They are fully guaranteed. They are guaranteed by law in the first place. They are guaranteed not only in our special laws, but also in the budget extension law, as well as in the one that is about to be adopted as “Budget 2026“, said Efremova.
According to her, the reduction of expenses will be sought through optimization of the maintenance of the system, and not through cutting social payments.
“In terms of maintenance, we are actually doing an analysis. We have made the relevant proposals to the Ministry of Finance for optimization of expenses, so that we can fulfill the conditions that have been set for us“, she said.
Efremova pointed out that about 5% of the staff positions in the system are vacant.
“We have about 5% vacant positions. Keep in mind that our system is very large“, she noted.
On the topic of whether civil servants should pay their own insurance, the minister stated that a thorough analysis is needed.
“The discussion has not yet been fully developed, as there is a lack of sufficient arguments in one or the other direction“, she said.
According to Efremova, the topic should be considered in the context of the overall remuneration system in the state administration.
“Over the years, I would say that there have been accumulated imbalances that have occurred due to temporary, one-time decisions to increase remuneration in one system, to not increase it in another, and correspondingly accumulated imbalances“, the minister stated.
Regarding working pensioners, she indicated:
“Of course, the best option is to have a phased termination of the work of more experienced people. A one-time release would bleed the administration or the security systems“, said Efremova.
Regarding maternity, the minister stated that no increase in social payments can be expected for the 2026 budget.
„Currently, it is not appropriate to make any changes in any system that lead to increased costs in order to stabilize the financial systems“, she explained.
At the same time, Efremova stated that the topic would be raised when preparing the 2027 budget.
„My struggle, battle or proposal for the next „Budget 2027“ will be in the direction of supporting motherhood“, the minister said.
She specified that both an increase in the payment in the second year of motherhood and the compensation for mothers who return to work before the end of this period will be discussed.
“This could be discussed. Including an increase in the amount of the compensation that, in principle, the mother receives when she returns to work along with her salary“, said Efremova.
Regarding pensions, the minister stressed that she would defend the implementation of the so-called Swiss rule.
“I, of course, will be a defender of it being implemented as written“, she said.