Bulgarian Govt to Discuss Changes in Pension Reform

Domestic | August 4, 2010, Wednesday // 10:50|  views

Bulgaria's Labor Minister Totyu Mladenov has submitted the final version of the changes in the retirement system, which will be discussed Wednesday by the cabinet. Photo by BGNES

The Bulgarian government will discuss the final draft for the changes in the pension reform that the Labor Minister Totuy Mladenov has submitted.

The changed will aim at decreasing the huge deficit in the system and giving the opportunity for increase of the pensions in the next years.

According to the final draft of the changes, all the employees from all the fields of work should gain more years of service in order to be able to retire. This transition will happen smoothly by adding 12 months every year for a period of three years.

In other words, from January 1, 2011, the retirement age for men and women will increase by one year. The same procedure will happen in 2012 and 2013.

In 2013, men will be able to retire at the age of at least 63, having 40 years of service. Women will retire when they are at least 60 years old and when they have worked for 37 years.

However, the smooth increase will not provide an opportunity for a flexible retirement, as previously proposed.

The Labor Ministry has given up on the idea that if people have reached the retirement ages, but do not have enough years of service, they could retire with a 0,2% lower pension for every month they lack.

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Tags: Totyu Mladenov, Labor Ministry, pension reform, Retirement age


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