Government denies plans to divert private pension contributions to state system

Bulgaria's Ministry of Finance has denied reports of an upcoming reform of the second pillar of the pension system, according to a statement issued by the ministry to the media, the Bulgarian News Agency (BTA) reports.

“The ministry continues its efforts to stabilise public finances against the backdrop of what it describes as an inherited excessive deficit and weakened fiscal discipline,” the statement reads. The ministry added that the draft state budget is due to be officially presented on 6 November.

Earlier, the opposition party "We Continue the Change" said it would call for protests if the government proposed transferring part of the contributions to the second pension pillar to the state-run National Social Security Institute. According to the opposition, Bulgaria put forward this measure to the European Commission just over 10 days ago.

Plamen Dimitrov, president of the Confederation of Independent Trade Unions in Bulgaria (CITUB), commented that now was the time to improve the second pension pillar, not dismantle it. Taking out part of the funds and redirecting them to the state social security system would be detrimental to all working people, he said, describing the proposal as unacceptable.

Edited by Ivo Ivanov