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The Minister of Social Affairs, Denitsa Sacheva, announced that the reduction of the state pension for the first pensioners with contributions in the private sphere will be less than 10%.
Reduce the possibility of retirement by 1 year with the three “golden years”
The pensions of former military and police officers who have benefited from early retirement in the last 5 years will be recalculated and increased.
This provides for changes in the Social Security Code to calculate the reduction of the first pension for people who will receive a second from private funds.
Due to their early retirement, privately insured military and police officers already receive a state pension, but reduced by 20%. However, they will receive a second pension after reaching normal retirement age.
The new formula for reducing the state pension should factor in 12% state insurance and years without contributions to private funds, the government proposes. It should give a reduction of around 9% in the pension from the National Social Security Institute, although the company insisted that it should not be more than 6-7%. The pensions of the military and police will be recalculated in accordance with it and thus will increase.
Retired uniformed officers are once again entitled to transfer their money from private funds to the National Institute of Social Security and, therefore, their state pension will not be reduced at all. They already had that deadline at the end of 2016. According to data at that time, more than 20 thousand pensioners from the Ministry of the Interior and Defense system have returned their money to the state institute.
From January 1 to June 30 of next year, women born between 1960 and 1964 will be able to transfer to the National Social Security Institute. This window will be valid for some 200,000 women entitled to a second pension, who will start it. receive in the period 2021 – 2024. For them, two pensions are expected to be less than one.
The state also proposes a complex scheme to transfer the money from a second pension to the National Institute of Social Security for the more than 3 million remaining insured in private funds. Now this right is up to 5 years before retirement. From January 1, 2022 to December 31, 2025, this option will take place no later than 1 year before reaching retirement age.
From January 1, 2026 to December 31, 2030, it will be possible to transfer money to the National Social Security Institute no later than 2 years before reaching the age, and from January 1, 2031 to December 31, 2035 , no later than 3 years. From January 1, 2036 to December 31, 2037, the term is no later than 4 years, and from 2038 the five years are returned.
However, the right to a pension with the three “golden years” before 1997 will apply for one year less. Instead of the start of 2023, this option will be possible until January 1, 2022, the government bet. After this date, pensions will now be calculated only from insurance income after 2000.
The double formula had to be valid until 2023, because then the proportion of people for whom the previous formula with the 3 “golden years” is more profitable will be significantly reduced.
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