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All pensioners will receive a BGN 50 pension bonus in October.
It undermines the basic principles of insurance because it breaks the link between contribution and rights.
The union believes that it is fairer to increase the amount of pensions by increasing the seniority ratio
They are ready with proposals for 2021: increase in income from contributions, minimum pension of 45% of the minimum wage
Pensions should be increased, but not by recalculation, but by increasing the insurance coefficient. The public announcement of intentions for changes in pension insurance, which have not previously been the subject of cooperation and consultation with the social partners, is inadmissible and contrary to established international and European norms and practices, the CITUB position reads.
The union has been arguing for years that the only correct and fair approach to increasing pensions is to increase the contribution / ratio (now 1.2) for each year of service. The reason is that it takes into account the insurance contribution of each pensioner. CITUB is ready with its proposals for 2021, but will wait to see the government’s macroeconomic forecast. Among his ideas are the increase in income from contributions, the minimum pension at 45% of the country’s minimum wage, maximum insurance income, increased with the growth of the minimum wage, the increase in the maximum pension and others.
CITUB will continue to be strongly committed to the proposals to increase the adequacy of pensions, but it is strongly opposed to the so-called recalculation, which, contrary to all the rules, redefines the pensions granted and paid for decades, applying the insurance income for that purpose. , formed in recent years by current employees ”, reads the position of the union. They are convinced that this This approach violates the basic principles of insurance, since it breaks the link between contributions and rights and “forces” solidarity under the pretext of increasing minimum pensions. “Against all logic, some elements of the contribution (the individual pension coefficient) are determined on the basis of the income during the employment of the people, and others (the insurance income used to calculate the pension) will be determined later . it changes with one that is formed in the post-retirement period, ”the trade unionists explain. They are convinced that The recalculation, based on a randomly selected average insurance income, will be a sure way for people who work and are insured today to lose interest and incentive to secure their actual income. They will wait and insist that over time their pensions will be redefined by applying the income of social security, in whose formation they did not participate. developing. ”, CITUB explains.
They ask politicians and institutions to draw on the experience of professionals, and in particular the social partners, before deciding and making public their intentions in the field of pension insurance.
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