The funds in the amount of 3 billion leva, which are annually transferred to private pension funds, must be returned back to the state social insurance (SSI). This was stated by economists Lyubomir Hristov and Viktor Papazov, who presented alternative proposals for Budget 2026 in parliament today. According to them, this measure will eliminate the need for the planned increase in the social insurance contribution. The two experts were in the National Assembly for an open debate organized by "Vazrazhdane" on the future of supplementary pension insurance. However, the expected discussion with representatives of the Bulgarian Association of Supplementary Pension Insurance Companies (BADDPO) did not take place due to the absence of the association.
The main emphasis in the economists' statement was the criticism of the planned increase in the insurance burden. Lyubomir Hristov was categorical that the planned increase in the contribution by two percentage points for next year should be dropped from the draft budget.
"According to Hristov, the increase in the pension contribution by 2 percentage points is unfounded and completely unnecessary, because the state already collects 5% of the insurance income, which, however, does not go to the DOO, but to accounts in pension funds managed by private companies," BTA reported.
The expert emphasized that the return of these 5%, which are currently diverted to the private sector, would bring fresh resources of 3 billion leva into the state system. This would allow balancing the budget without increasing the tax burden and without raising the retirement age.
According to the data presented by Hristov, the current model of diverting funds to pension companies artificially increases the deficit of the National Social Security Institute (NSI) by 1.4% of the gross domestic product.
"At the moment when the government wants to better balance the state budget, they want to reduce the deficit, it is enough to simply include a text in the law that “Vazrazhdane“ proposes to return these 5% or 3 billion leva from private pension companies to the state social security," said Lyubomir Hristov, quoted by BTA.
Economist Viktor Papazov also expressed a sharp position on the second pension pillar, defining it as "harmful to society". He commented on the absence of BADDPO from the debate, noting that the association had published a statement the previous evening, but had not sent representatives for a direct discussion.
"They obviously have no arguments and are afraid to come out for an open debate in front of the public and refute our claim that the second pension pillar is a robbery that condemns Bulgarian pensioners to deprivation at the age when they need pensions," said Viktor Papazov.