site.btaBICA Suggests That Social Security Amendments Be Drafted by Interdepartmental Group

BICA Suggests That Social Security Amendments Be Drafted by Interdepartmental Group

Sofia, May 4 (BTA) - The Bulgarian Industrial Capital Associational (BICA) suggests realistic extension of the deadline for discussion of the proposed amendments to the Social Security Code (SSC) saying that it would be better to withdraw the current version and set up a working group instead that would draft new changes. According to BICA, the working group should include representatives of the Finance Ministry, the Ministry of Labour and Social Policy, the Financial Supervision Commission, the National Social Security Institute, employers, trade unions and experts.
 
This is proposed in a BICA position circulated by the organization's press centre.
   
According to the Association, the only correct action will be to guarantee a possibility of free informed choice for people having reached retirement age between payment of the amount of their second-pension account as a lump sum, or receiving a term pension payable until the exhaustion of the funds within the personal account with the right of succession, or drawing a second pension for life.

According to BICA, the proposed changes undermine the second pillar and, therefore, the pension model as a whole. They also cause concern among people about the funds within their accounts.  The transfer of the personal pension accounts to a common pension pool would eliminate the second pillar and three-tier pension model, BICA believe.

"If we neglect the capital schemes and change the rules in the course of the game, we should not be surprised from the drop in foreign investments or the fact that there are no serious candidates for privatization of the stock exchange," reads the position.