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It is not fair not to have 120,000 people with incomes greater than 3,000 BGN pay full insurance, says Emilia Maslarova
Emilia maslarova he is the Prime Minister of Labor and Social Policy. She took office immediately after the establishment of the ministry in Dimitar Popov’s government. Maslarova is also the longest-serving social minister, holding the position twice. She was the head of the ministry and government of Sergei Stanishev in the period 2005-2009.
1. Low Social Security in low average income low pensions
We established the Ministry of Social Affairs in 1990 by the Labor Committee and the Ministry of Health and Social Welfare. The current minister, Ms Denitsa Sacheva, was then one of the youngest associates in the ministry, who began working in 1990-1991, assisting Deputy Minister Evgenia Spasova. Even then, with some of the colleagues here, we discussed what the pension reform should be, which started in 2000. We went from a cost coverage system to a capital system, which is two-pillar. I definitely want to say that I support a pillar of solidarity and a capital pillar. The three-pillar concept belonged to the European Bank for Reconstruction and Development, and then many countries: Latvia, Lithuania, Estonia, Poland, Hungary, Romania, switched to this system. All of us who have worked in this period have tried to look to the future, but looking to the future, I do not know to what extent we have been able to evaluate the pitfalls that exist in this system. It is true that at this moment, in my deep conviction, we have problems that we discussed between 1997 and 2000. One of them is the problem of demographic characteristics: what will happen, what will be the structure of the population, what will the market be like. labor force and whether structural unemployment will occur. We haven’t been able to anticipate the things that are settling in in the long run – demographics, and there are things in the second pillar that will create problems.
Since we have all been working, we have faced a very serious problem: all the problems of the economic situation of the country that we are trying to solve through the pension system, unfortunately. Bad work structure, low income, which means under insurance and underinsurance in the system, which immediately affects everyone.
2. New calculation increase pensions
What we did during my second time at the ministry was introduce the Swiss rule, an increase each year based on growth in insurance income and inflation. The other thing we did and now from a distance is already considered something good, but then we had many problems and criticisms, it was the recalculation of old pensions on October 1, 2008. This step has not been taken for 12 years, but it is very important. If I have to be honest, I think it would be much better if we don’t give everyone the same, but we recalculate all the old pensions, which will be much more fair. The pension system is based on three things: sustainability, security and adequacy.
3. The rich pay a lot less than normal people here more money for Adults
I would like to clarify that I have no conflict of interest with the private pension funds and the National Institute of Social Security. If we want this system to work well, it must be fair and trustworthy. Currently, the administration generates mistrust in the system, definitely. I don’t dare to go to my students and tell them what to do from now on, frankly. The pension system cannot be converted into social assistance. Social assistance is provided based on criteria, thus increasing the minimum pension (The government’s proposal is to increase it from 250 to 300 BGN at the beginning of the year). we have no criteria, we give it to everyone. In the case of social benefits, income, marital status, health status, etc. are considered. And here we are violating trust, categorically.
Since we are in a period of crisis, given that the social security system is not only fair but also supportive, why is injustice allowed and not solidarity? We will give everyone BGN 40 child allowance, which is fair. But, at the same time, we will not take out insurance for those with income above BGN 3,000. (BGN 3,000 is the maximum insurance income and for salaries above this amount, contributions are paid only in BGN 3,000, and the excess is free – br) They pay and will pay less than the average Bulgarian. And the people who do not pay their full insurance are more than 120 thousand people. These are the ones with salaries even higher than BGN 6,000. Here’s something that is unfair.
In addition, the Silver Fund was established to finance the pension system. It should have had 40 billion BGN already, but it seems to be only 3 billion BGN. What’s going on with the “Silver Fund” in this situation? We have a problem, what are we doing? Do we keep it? It’s over? Because at that time it was leaked that along with the contributions to the medical insurance with Mr. Simeon Djankov this money went somewhere.
We cannot violate the basic principles of the system, the system is my contribution to personal insurance, my contribution to personal insurance, my time of service. Everything else must be removed from the pension system if we are to be fair.
4. Everyone can until the last yes decide if take 2 pensions, or alone one of the NSSI
When we talk about the second pillar, let’s not forget that one thing is to have been insured in it for 40 years and another, 20 years. Let’s not forget that in the first pillar there is an indexation of pensions every year under Swiss rule, and in the second pillar we depend on the funds and there are other criteria that are important. I support the view that everyone has a chance to say something shortly before retirement, and let’s be honest with people about what’s going on.
Decent pensions: why “no”, how “yes”
9 social ministers – the current Denitsa Sacheva and eight of her predecessors in office, met for the first discussion of its kind in the Club “24 Hours” Visionaries “.
The nine discussed how the current state of the pension system came about, which provides only half of the well-deserved income of the elderly. Are there options to get out of this situation and a rapid growth of pensions so that the income really provides a decent life? Is a quick and painless decision for the payment of the second pensions possible? – They were also topics of the social ministers.
The first part of the conversation of the nine was published by “24 Chasa” in the October 15 issue. The main issue in it was whether the scheme proposed by the government to increase pensions is fair, in which those of the poorest will grow more than those of pensioners with higher incomes.
Each of the nine social ministers also presented their concept of the problems and their solutions in their speeches. From today we publish the complete words of each one of them. The sequence will be relative to the sequence of their mandates in the last 30 years since the establishment of the Ministry of Social Affairs. We start with Emilia Maslarova.
Readers asked more than 1,000 questions of ministers 24 hours a day. They respond to some of them directly, and for each specific case “24 hours” they will seek answers from the Ministry of Social Affairs and the National Institute of Social Security and will publish the solution to the problems.
We look forward to the next few days the opinions of Mincho Koralski, Ivan Neykov, Lidia Shuleva, Hasan Ademov, Ivaylo Kalfin, Zornitsa Rusinova, Biser Petkov and current Minister Denitsa Sacheva.
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