The scandal over the so-called “nationalization of pensions” has so far had no confirmed legislative dimension, but it has already triggered a sharp political clash. At the center of the dispute is the possibility that part of future contributions to the second pension pillar could be redirected to the National Social Security Institute (NOI).
According to information circulated by opposition representatives, the draft budget for 2027 could provide for a reduction in contributions to universal pension funds from 5% to 2.5%. The remaining 2.5 percentage points would go to the NOI. The claim was presented as a way to secure additional revenue for the state pension system.
In a separate statement to the Bulgarian National Radio, Democratic Bulgaria co-chair Ivaylo Mirchev said that the Ministry of Finance had proposed to the European Commission that 3% of the second pillar be redirected to the NOI. Thus, two different figures appeared in the public domain – 2.5% and 3%. Mirchev said that Brussels’ response had been negative. The claim about this communication has not yet been publicly confirmed by the European Commission.
What the ruling parties deny
The Ministry of Finance described the information about an upcoming reform of the second pension pillar as disinformation. The ministry’s position states that such a change is not part of the measures being prepared, and that the budget’s official presentation is still to come.
Konstantin Prodanov, chair of the parliamentary Budget and Finance Committee, said: “There are absolutely no intentions to change the pension model, affect the second pension pillar or redirect social security contributions to the first.” MP Stefan Belchev also denied that the ruling parties were preparing such a change and described the information as “fake news”.
Minister of Labour and Social Policy Natalia Efremova said that no talks were being held about transferring part of the contribution from the second pillar to the first. According to her, discussions with pension companies concern returns, investments and guaranteeing future pensions.
What the opposition claims
Ivaylo Mirchev presented a document dated October 15, which he said was part of the communication between the Bulgarian government and the European Commission. Democratic Bulgaria is insisting that the Ministry of Finance publish all correspondence on the issue.
On November 5, Mirchev said he was giving representatives of the ruling parties 24 hours to explain whether they had discussed such an idea with the European Commission. “We know who the experts are, and we have enough information,” he said, without publicly naming the people he was referring to.
So far, no bill has been submitted to change the contribution rate, and there is no official budget text confirming the opposition’s claims. This means that, for the time being, the political dispute has been confirmed, but not an intention by the government embodied in an official decision.
What the change would mean
The dispute is not about the funds already accumulated in individual accounts, but about the future distribution of social security contributions. If contributions to private funds are reduced, fewer funds will be paid into the accounts, where they are managed on a funded basis and inherited under certain conditions. At the same time, the NOI would receive more current revenue for the solidarity-based pension system.
The next key moment is the presentation of the draft budget for 2027, which is expected on November 6. It is precisely in that document that it should become clear whether there is a concrete proposal to change the second pension pillar or whether the accusations will remain part of the political dispute.
Sources: btvnovinite.bg, nova.bg, bnrnews.bg