The Bulgarian Association of Supplementary Pension Funds is warning of the consequences of a possible redirection of 2.5 percentage points from the social security contribution for a second-pillar pension to the National Social Security Institute. The reason for the association’s position is information that the measure could be included in the draft budget for 2027.
However, the association уточifies that it has no information about the government’s budget plans. The association will comment on the specific proposals once the draft has been presented.
According to the pension funds, the possible change would divert half of the future contributions to workers’ individual pension accounts. The organisation points out that these funds accumulate, increase through the returns achieved and can be inherited.
The association warns that if the funds are directed to the National Social Security Institute, they will be spent irreversibly instead of remaining in the individual accounts of insured persons.
Government Denies Change Is Being Prepared
Konstantin Prodanov, chairman of the parliamentary Budget and Finance Committee from „Progressive Bulgaria,“ denied that there were plans to redirect part of the contribution to the National Social Security Institute.
„There is no such thing. It is not being planned and it has not been planned,“ Prodanov said.According to him, social security contributions to the second pension pillar will remain unchanged. The Ministry of Finance also said that claims of an upcoming reform of the second pillar were untrue. The ministry said that the budget would be officially presented soon.
Thus, for the time being, there is a discrepancy between the pension funds’ warning about a budget measure under discussion and the public denial by the government and the Ministry of Finance. The final answer will come with the publication of the draft state budget for 2027.
Sources: novini.bg