The Finance Ministry has denied that it is preparing a reform of the second pillar of the pension system. The ministry described as false the information that part of the funds currently flowing into the personal accounts of employed Bulgarians could be redirected to the National Social Security Institute.
“This information, circulating in the media, is not true,” the Finance Ministry said.Claims of a major change to the pension model emerged earlier in the day. According to the information circulated, the state had discussed an option whereby part of the contributions to the second pension pillar would not be accumulated in personal accounts but would instead be paid into the National Social Security Institute.
Representatives of “We Continue the Change” and “Democratic Bulgaria” described the idea as absurd. They said that such a change would constitute an encroachment on private pension funds.
Finance Ministry points to deficit and fiscal discipline
In its position, the Finance Ministry said it continued to work toward stabilizing public finances. The ministry cited an inherited excessive deficit and weakened fiscal discipline as the reasons for these efforts.
The Finance Ministry added that the official presentation of the budget was forthcoming. Until then, no decision had been announced to change the rules governing the financing of the second pillar of the pension system.
Sources: news.bg