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Recalculating all the pensions granted until 2015 is one of the ideas currently being discussed to increase the income of the elderly. This was announced by the Minister of Labor and Social Policy Denitsa Sacheva, quoted by “Trud”.
Currently, there is a very large gap between the amount of the individual coefficient of pensions granted before 2015 and those after, explained the Minister of Social Affairs. The other option that is being discussed is to index only the lowest pensions, those below BGN 400, granted until 2015. My opinion is that all pensions should be recalculated, Sacheva said.
The option of indexing the pensions granted until 2015 would cost the state between 1.2 and 1.5 billion lev and will apply to one million, one million one hundred thousand people. Estimates of all options show that between 1,200 and 3,800 million levs will be needed a year, the Social Minister said.
If the option to increase pensions is accepted, there will be no indexation from July 1, because there is no way the funds will reach it, said Denitsa Sacheva.
There is also a proposal from “United Patriots” to increase the minimum pension to BGN 300 from January 1, 2021. However, this will create additional problems because it will equalize the pensions of people without work experience and insurance with those who have the herself, commented the Minister of Social Affairs.
Of course, the fourth option is to continue paying the BGN 50 supplement to all pensioners. Aid will continue at least during the winter months or as long as the coronavirus emergency lasts. Because retirees are the most vulnerable people in this situation, Sacheva stressed.
The indexation of pensions is expected to be clear by the end of September so that the spending can be included in the budget. The proposals will be considered by the Coalition Council, which will make a political decision, the minister explained.
An analysis of social assistance is currently being carried out, which should be ready by the end of October and presented to the National Assembly, because it is the guarantor of the report. Family benefits for children certainly need to change, because child benefits are among the most discussed topics and everyone is dissatisfied with them. My personal opinion is that there should be universal baby supplements, but this is a matter of estimates and possibilities, Denitsa Sacheva said.
What is being discussed so far
Option I Supplement of BGN 50 for all pensioners until the end of the emergency situation
Option II Minimum pension of 300 BGN as of January 1, 2021 without pension indexation
Option III Recalculation of the lowest pensions granted up to 2015
Option IV Recalculation of all pensions granted before 2015
Iskren Veselinov, Co-Chair of the United Patriots General Assembly:
We convene a Coalition Council after the holidays
We organize a round table
The pension issue will most likely be debated in the Coalition Council late next week or early next week. One of the options is to increase the minimum pension to BGN 300 starting next year.
Another idea that is being discussed is that in addition to increasing the minimum pension, there should be a recalculation of part of the pensions. And the third option is to recalculate the old pensions from before 2015. However, the financial resource required is greater than that needed to increase the minimum pension to 300 BGN.
“Patriotas Unidos” will organize a round table in October with the participation of retirees and non-governmental organizations from the social sphere to hear their proposals.
Unions: the minimum should be 45% of the minimum wage
Increase the coefficient for one year of service.
According to CITUB leader Plamen Dimitrov, unions should be involved in pension discussions.
The only correct and fair approach to increasing the amount of pensions is to increase the contribution / coefficient (now 1.2) for each insurance year, which takes into account the contribution of each pensioner. This was stated by CITUB in its statement.
The union is ready with its proposals for 2021: the minimum pension to become 45 percent of the minimum wage for the country and the maximum insurance income to increase with the growth of the minimum wage, but it is waiting for the parameters the government’s macroeconomic forecast comply with them. your specific estimates.
The CITUB strongly opposes the so-called recalculation, “in which, contrary to all the rules, the pensions granted and paid for dozens of years are redefined, using the insurance income formed in recent years reported by the media) by the employees current ”.
According to them, 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 lower pensions. The union insists on participating in future discussions on the issue.
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