The question 10% or 11% to increase pensions is invented because the Social Security Code clearly says how this should be done from July 1.
This is what Prof. Zheko Milev, deputy head of the "Finance" department, told BNR. in UNSS, and explained:
"50% must be taken into account from the growth of inflation for 2023 and 50% from the growth of the insurance income. If you count, you get 10%. When the Budget was drawn up, 11% growth was set in it, and this reflected a forecast, then the data was not known.
If we strictly follow the provisions of the regulatory framework, the increase should be 10%, but since the numbers in the Budget regarding pensions are already 11%, and we are in a pre-election situation, it was logical for me to reach to an increase of 11%".
He emphasized that any issue related to the pension system becomes central because pensioners are a significant part of society.
"The main question is how sustainable the pension system is in our country. The main reform was made more than 20 years ago with the introduction of the second pillar in the system. Even then, the negative demographic trends in our country were clear. This is the main system, which is why we all expect that the first pillar will experience difficulties and they will become more and more significant in the coming years", commented Prof. Milev.