site.btaPension Funds to Take Clear Stand on Second-pillar Pensions - Social Policy Minister

Pension Funds to Take Clear Stand on Second-pillar Pensions - Social Policy Minister

Sofia, April 26 (BTA) - Deputy Prime Minister and Labour and Social Policy Minister Ivailo Kalfin expects pension funds to state clearly if they can guarantee inheritable supplementary pensions for life.

Kalfin told journalists on Monday that during the public discussion of the Finance Ministry's bill amending the Social Insurance Code, the Pension Funds Association should make it clear what commitments the funds can meet based on actuarial estimates so that people will know what they can rely on.

Тhe Finance Ministry suggests that the personal pension accounts be transferred to a common pension pool that will allow pensioners to draw a second pension for life. This may mean, however, that those pensions will cease to be inheritable, which is an option now.

Kalfin's personal opinion is that the second-pillar pensions, for which voluntary contributions are made to the pension funds, should be held in individually managed, inheritable personal accounts.

The transfer is part of a bigger strategy, which is under public discussion until May 13.