Bulgarian Retirement Pensions Frozen until 2013

The Director of the Bulgarian National Social Security Institute (NOI), Hristina Mitreva. Photo by BGNES

Retirement pensions in Bulgaria will not go up before 2013, according to the Director of the National Social Security Institute (NOI), Hristina Mitreva.

In a Saturday interview for Darik radio, Mitreva said the cabinet's plan is for the increase of retirement pensions to follow the increase of income in order to avoid the 2009 imbalance when, during the term of the previous, Socialist-led Three-Way Coalition cabinet, pensions went up 20% while income remained the same.

The NOI Director pointed out the so-called Silver Fund would not solve the problem with the shortage of money in the retirement system.

The Silver Fund has BGN 1.6 B, while BGN 600 M a month is needed for pensions, meaning the Fund would be depleted in three months if it is used to pay them.

"No one expected such serious effects from the economic crisis. When the Silver Fund was established in 2009, it was unclear how long this crisis would last," Mitreva said.

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