Bulgaria's PM: Private Pension Funds Should Start Paying

Bulgaria's Prime Minister Boyko Borisov has urged private pension funds to start paying pensions. Photo by BGNES

For the first time the Bulgarian pension reform is so radical that it allows the system to become balanced as of today, the Prime Minister Boyko Borisov has announced.

In an interview for the Bulgarian National Television on Thursday, Borisov explained that the private pension funds should begin paying the BGN 50 pension to miners from January 1, 2011.

The Prime Minister explained that the trade unions have demanded that the contributions in private pension funds should go to the National Insurance Institute (NOI).

"I suggest you do not fall for such talks because the support we receive from Europe, the United States and Russia is irritating representatives and leaders of political parties, who are used on making money on the expense of the people," he said.

Borisov explained that he was talking about the money that people have paid as contributions in private pension funds.

"The money have been accumulating since 2000. They are not owned by private pension funds that are now announced for nationalization, they are people's money," he said.

"Look at what happened in 2006, 2008, 2009, before we came. These funds have to start paying the pensions of the so-called categorical workers, who work at the worst conditions. However, when the time for paying comes, they are never ready," Borisov said.

In his words, the previous government was tentative and inadequate. Borisov also added that its real strategist and organizer was the President Georgi Parvanov.

"So he should not pretend that he is just entering politics," the Prime Minister said.

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