site.btaNational Tripartite Cooperation Council Supports Introduction of Pan-European Pension Product

The National Council for Tripartite Cooperation (NCTC) expressed support for the proposed changes to the Social Security Code, which introduce the Pan-European pension product in Bulgaria. The proposal, discussed at the meeting of the advisory body on Tuesday, was tabled by Deputy Prime Minister and Minister of Finance Assen Vassilev.

The pan-European pension product, popularly known as the "European pension", will enable funds from other EU countries to enter the Bulgarian market, collect social security contributions and pay off pensions. The changes will also allow the transfer of social security contributions and pensions from one country to another, within the EU, if the insured person changes their place of residence.

The European pensions will be entirely on a voluntary basis, similar to the funds for voluntary pension insurance, which still exist in the Bulgarian legislation, the bill also provides. Pension products will differ from each other, and people will be able to participate in investment management on their own, choosing profitable but risky or less risky but safer options for managing their funds.

The social partners in the NCTS expressed their support in principle for the proposed changes. The Podkrepa Confederation of Labour Support Committee questioned their effectiveness. According to them, this mechanism will not work in a country where people have very limited opportunities to save extra money.