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Average pension will increase to BGN 489
The minimum amount of the pension for seniority and seniority increases from BGN 250 to BGN 300 as of January 1, 2021. From the same period, the maximum amount of one or more pensions received increases from BGN 1,200 to BGN 1,440 per month. For pensions granted at the end of 2020, a 5% update under the so-called Swiss domain. This was decided by the cabinet today, after the approval of the bill on the state social security (SSS) budget for 2021.
The average amount of a pensioner’s pension next year is expected to reach BGN 488.97, thus increasing by almost BGN 77 or 18.6 percent compared to its current value. In 2021, 12,346 million BGN is foreseen for the payment of pensions, which represents 1,770 million BGN more than this year’s expenses. In the first three months of 2021, the payment of additional amounts to the pensions of the 2,104 million pensioners will continue for an amount of 50 BGN.
The minimum insurance income for self-insured also increases from BGN 610 to BGN 650. The minimum insurance income for registered farmers and tobacco growers remains at BGN 420. The maximum insurance income amount for all is also maintained the insured: 3,000 BGN.
For 2021, no minimum insurance income (MOP) has been agreed for economic activities and professional qualification groups. Without imposing an administrative increase in the MOD and with a planned increase of the minimum wage by 6.6 percent from BGN 610 to BGN 650, the average increase in the MOD in 2021 is expected to be around 4.5 percent.
The draft also modifies the Social Security Code. They propose that in the period between January 1 and June 30, 2021, all people who have missed the 5-year period to change the choice of insurance in a universal pension fund, can exercise this right. During the same period, people who have already been granted a pension without being able to change their insurance may request its recalculation without lowering the individual coefficient if they transfer their funds from the individual account to a universal pension fund to the Pension Fund.
The new provisions also stipulate that when determining the reduction of the individual coefficient, when the candidate-pensioner is also insured in a universal pension fund, the transfer from the state budget to the social security budget of 12 percent on the sum of income of the insurance of all insured persons for each calendar year in the period from 2009 to 2015. When determining the amount of the reduction of the individual coefficient, the years of insurance experience with and without insurance in a universal pension fund will be taken into account. To guarantee the rights of all pensioners, pensions granted with a reduced individual coefficient will also be recalculated.
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