“Independent Pension Reform Council” is set up

The Pension reform advisory council to the minister of labor and social policy came out with unconvincing proposals for minimal reforms which will not solve the long-term problems of the Bulgarian pension system. Even these inadequate changes in the pension system will not happen, as the Ministry declared temporary pension reform freeze which we fear will become a permanent one.

This made us set up an alternative "Independent Pension Reform Council" in which leading economists will take part. The Council's goal will be to develop a real pension reform that will secure stability and sustainability as well as choice, when and under what conditions the employees will retire and what insurance contributions will they pay.

The pension system is a long-term fiscal risk. Greece's postponement of the pension system reform contributed a great deal to the current budget problems and risk of state default. This is an example of the heavy problems the reform delay could cause.

In addition, nobody is content with the Bulgarian pension system at the moment – neither the employees (who pay high social security contributions), nor the pensioners (who are not satisfied with the size of their pensions), nor the future pensioners (who do not expect to receive a good pension), nor the state budget (to which the pension system is a fiscal risk). The system needs a profound reform.

Based on the best European and world models, the Independent Pension Reform Council will prepare options for real pension reform.

Members of the Independent Pension Reform Council are Petar Ganev, Svetla Kostadinova, Vladimir Karolev, Georgi Angelov, Georgi Ganev, Latchezar Bogdanov, Georgi Stoev. Other participants as well as public institutions representatives could also be invited.

For more information:

Petar Ganev, [email protected]; 02/952 62 66