Those wishing to choose a sub-fund for their second-pillar pension account have 20 more days to do so, the Bulgarian Association of Supplementary Pension Security Companies (BASPSC) reminds the public. November 30 marks the expiry of the three-month period during which insured persons can, for the first time, state their preferences regarding how their savings will be managed—savings that belong to them personally, are guaranteed, generate returns and can be inherited.
Choosing a sub-fund is a right, not an obligation, and can be changed every 12 months. If no preference is expressed, after January 1, 2027, insured persons will be allocated according to their age. People up to the age of 50 will be placed in a dynamic sub-fund, those between 50 and three years before retirement in a balanced one, and thereafter they will be placed obligatorily in a conservative fund, so that the returns accumulated over the years are not affected by potential movements in global markets.
The multi-fund model will come into force on January 1, 2027, and fee reductions for pension and insurance companies will begin alongside it, in line with public expectations. The law stimulates competition among the individual companies and links their revenues to the returns they have achieved in the interests of the people insured with them. According to the latest data for the first half of this year, pension and insurance companies achieved returns of EUR 584 million; cumulatively, over the past three and a half years, the figure has exceeded EUR 3.4 billion. These additional funds have been allocated to the personal accounts of all working people, on top of their gross contributions of 5% of their monthly insurable income.
The BASPSC reminds the public that the introduction of multi-funds is a good opportunity for everyone to find out which pension fund holds their account and the amount of savings in it. Anyone can check this through the National Revenue Agency using a Personal Identification Code (PIC), or by calling 070018700.
The companies continue to actively inform insured persons, answer their questions and provide consultations. Additional information can be found on the websites of the pension and insurance companies, as well as on the BASPSC website, pension.bg