site.btaInternational Forum on Pension Markets in Central, Eastern Europe Takes Place in Sofia

An international conference on prospects and new opportunities for pension markets in Central and Eastern Europe takes place on Tuesday in Sofia. The event is organised by the European Confederation PensionsEurope and the Bulgarian Association of Supplementary Pension Security Companies (BASPSC). 

Topics of discussion include the development of funded pensions in the CEE region, best practices related to the introduction of the euro and the payout phase, automatic enrolment in supplementary pension pillars, the topic of the regulatory framework and new trends in pension systems in different countries, and the transition of some countries after their accession to the European Union. 

Social Minister Ivanka Shalapatova gave a video address to the audience. Social security in this country has a history of over 130 years and rich traditions. In 1998 Bulgaria adopted the idea of building a three-pillar pension system, Shalapatova noted. She also said that the combination of the solidarity and funded pension systems, as well as personal choice and private initiative with public interest, is a guarantee of better social security for people.

According to Shalapatova, the supplementary compulsory pension insurance provides different choices for the insured persons. She stressed that on the one hand people have the right to choose to participate in this type of insurance, and to make a personal choice of pension fund. On the other hand, citizens can adjust this choice by changing their participation in the respective fund, Shalapatova pointed out.

In 2021, the regulation of the phase of payment of pensions from universal pension funds was improved, the minister said. Changes in legislation related to the successful implementation of the regulation on the pan-European personal pension product are also a fact. “I believe that providing a choice among different types of pension products will enhance positive competition and allow every citizen to find and use the product that best suits their needs,” Shalapatova also said. 

Pension insurance companies in Bulgaria currently manage assets of over BGN 21 billion for over 4.9 million insured persons, Shalapatova said.

The Financial Supervision Commission (FSC) has set a standard for the implementation of a predictable and consistent regulatory policy, the consequence of which is the remarkable development of the supplementary pension insurance activity in recent years, said Diana Yordanova, FSC deputy chair and head of its Insurance Supervision department.

In the context of global digitalisation, the financial sector's preparation for joining the eurozone, the country's accession to the Organisation for Economic Co-operation and Development (OECD) and the European Green Pact, the FSC has positioned itself as a reliable partner whose mission is focused on maintaining the stability of the non-bank financial sector, she added.

Yordanova also said that the crises of the recent years, such as the coronavirus pandemic and the war in Ukraine, have prompted a review of pension systems globally.