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"PensionsEurope deeply concerned with developments in Bulgaria"
Pressrelease of the organization PensionsEurope
Declaration by the International Federation of Pension Fund Administrators (FIAP)
"Doverie above all"
Daniela Petkova for the "Forbes" magazine
Solidarity pension systems will not disappear, but will undergo serious reforms
Interview with Daniela Petkova, Chair of the Management Board of PAC Doverie, published in Capital Weekly
Press release Vienna Insurance Group
Unit values data for the day on the new site of PAC Doverie on https://www.poc-doverie.bg/bg
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Actuarial methods

A set of statistical methods and rules, which are applied to determine the expected revenues from future contributions and investments, as well as the amounts due for payment of future pensions from the pension company.

Administrative distribution

Made by NSSI according to methods approved by SISA and the security institute. Subject to administrative distribution are all people that had not chosen their fund within three months from the date their grounds for supplementary mandatory pension insurance originated, as well as those who have submitted applications to more than one pension fund. The administrative distribution is made on a casual, lottery principle proportionally to the market share each pension fund holds as of the time of the


A person licensed by the State Insurance Supervision Agency to provide the actuarial service of the pension company and the administered pension funds based on an employment contract concluded with the company.

Application for participation in a supplementary mandatory pension fund

A standard-form document for joining a professional and/or general pension fund. Its form and content are prepared by NSSI and published in the State Gazette. Every person subject to mandatory supplementary pension insurance is obliged to fill in the application of a chosen fund within a period of 3 months after occurrence of the social insurance obligation. The choice of a fund is personal and those who have not exercised their right to choose are allocated on a non-discretionary basis to one of the registered funds in a manner and according to a procedure established by the National Social Security Institute and the Financial Supervision Commission.

Average life expectancy

A statistical index used to calculate the future average life expectancy based on the experience of individuals having common characteristics, such as sex, age or occupation.


Bulgarian Association of Supplementary Pension Insurance Companies

BASPIC – a non-government organization established in 1996. Members of the association are all licensed pension insurance companies in Bulgaria. The purpose of the organization is to uphold the collective interests of the pension insurance business before the legislative and the executive powers and other institutions, to popularize the supplementary pension insurance and to support processes of improving the qualifications of the people employed in the system, as well as to cooperate with international organizations.

Board of Trustees

A body representing the interests of the insured persons at the general and the professional pension funds. The Board of Trustees comprises of an equal number of representatives of the nationally represented employer and worker organizations and one representative of the pension insurance company. The rights and obligations of the Board of Trustees are regulated in a decree of the Council of Ministers upon proposal of the State Insurance Supervision Agency. The proposals and decisions of the Board of Trustees have an advisory nature for the pension insurance company.


Contributions for buying pension rights

Lump-sum cash contributions to the voluntary pension fund which allow members to acquire pension rights no matter that they do not make monthly contributions. There is no limit on the amount of the lump-sum.

Code of Ethics

A document adopted by BASPIC – regulates the standards of ethical behavior and loyal competition that all pension insurance companies are obliged to follow. Serious or systematic violations of the code may lead to loss of membership in the Association of the pension funds.


Fully-funded principle

A principle of insurance where the funds are accumulated in individual savings accounts of the insured persons and are their personal property. The amount of the pension is determined depending on the accumulated amount and in accordance with the regulations of the respective fund. Supplementary pension funds are based on the principle of fully funded, individually capitalized system.

Fees and deductions

According to the particular laws the pension insurance companies form their revenues from fees and deductions, as follows:
Management fee – a one-time fee taken from each contribution. Its maximum rate is 7% from the contribution.
Investment fee – with supplementary mandatory pension funds: 1 per cent of the pension fund assets per year; with voluntary pension funds: up to 10 per cent on the realized annual yield.
Registration fee – only with the voluntary pension funds. Cannot exceed BGN 10. Deductions – can be charged on every amount withdrawn or transferred from the fund, or when the insured person demands information outside the terms and procedures provided for by law. The fees and deductions may not exceed two times the amount of the actual incurred expenses.
The particular rates of the deductions and the manner it is determined are settled in the regulations of the pension funds.


Individual account

Insurance with a supplementary pension fund is personal. For the purpose every insured person has an individual account where the contributions for supplementary pension insurance are accumulated and on which the investment yield is distributed proportionally to their share in the aggregate assets of the pension fund. The accumulated amounts are capitalized in individual account and no reallocation of funds is allowed from one account to another. Individual account accumulations of insured persons are not subject to enforcement.

Insurance contributions

Supplementary pension insurance is implemented by cash insurance contributions. With funds for supplementary mandatory pension insurance the contribution rate is determined annually with the adoption of the budget of NSSI. With voluntary pension insurance the contributor decides alone on the amount of the contribution he makes for himself or for third persons. The minimum amount of the contribution for voluntary pension insurance is 10 per cent of the minimum salary.

Insurance contract

Supplementary pension insurance is implemented on the basis of a contract concluded by the pension insurance company on one part and the insured person, the employer or a third-party insurance contributor on the other. The contract is signed in two uniform copies, one for each party. The content of the insurance contract is according to the provisions of law and the regulations of the respective fund and shall be approved by SISA.

Insured event

Supplementary pension insurance covers the insured cases of old age, disability and death. The occurrence of an insured event is regulated with the specialized laws and the regulations of the respective funds.

Insured person

A person having an individual account in a supplementary pension fund. According to law members of supplementary pension funds may be: every person born after December 31, 1959 – for the general pension funds; every person working under the conditions of I and II category of labor – for the professional pension funds; and every Bulgarian citizen who has attained the age of 16 years, for the voluntary pension fund;


Limited-period pension

Pension paid for a definite term. Depending on the type of pension fund it can be:
1. A pension for early retirement of people working under the conditions of 1st and 2nd category of labor provided that the following conditions are met: not less than 10 years of service under labor category I and 8 years lower age than the age required for eligibility for old age and length of service pension under Part I of MSIC; not less than 15 years of service under labor category II and 3 years lower age than the age required for eligibility for old age and length of service pension under Part I of MSIC.
2. A limited period pension from a voluntary pension fund: at the time of retirement the insured person may choose the term for receiving his supplementary pension depending on the regulations of the respective voluntary pension fund.


National Social Security Institute

A legal entity which administers the mandatory public insurance by:
1. implementing the budget of state social insurance;
2. collecting the insurance contributions and receivables of state social insurance;
3. collecting the contributions for health insurance, vocational training and unemployment fund and supplementary mandatory pension insurance;
4. exercising control on observation of the insurance legislation;
5. paying pensions and other social insurance benefits;
6. collecting information and maintaining an information system about the insured persons, the insurance contributors and the self-insured;
NSSI reports its activity to the National Assembly of the Republic of Bulgaria.


Pay-as-you-go principle

Principle of insurance where the contributions of the insured are accumulated in a common fund to cover the expenses on the payment of pensions to the current retirees. State social security, forming the 1st pillar of the pension insurance system is based on that principle.

Pension scheme (plan)

The concrete financial mechanism for determining the pension liabilities, payments and insured events, calculated through statistical (actuarial) methods.

Pension rights

The rights that the insured person acquires as result of participation in a fund for supplementary pension insurance. Depending on the type of the fund and the pension scheme the rights may differ – right to an early retirement pension, to a pension for old age, survivors’ pensions, disability pension, lump sum or periodic payment of allowances, rights to receive information, etc. The concrete rights and the manner of their execution are described in the rules of operation of the respective pension fund. The rights of the members of supplementary pension funds are personal.

Pension insurance company

A joint stock company registered under the Trade Act and licensed under the Supplementary Voluntary Pension Insurance Act. The pension insurance company may establish as separate legal entities and manage supplementary pension funds. Each company may register only one voluntary, one general and one professional (occupational) pension fund. The revenues of the pension company are formed from fees and deductions as described in the respective laws and regulations and from the management of its own assets. The minimum capital required by law for registration and licensing of a pension insurance company is BGN 3,000,000.

Pension fund

A legal entity having variable number of members. The assets of a pension fund consist of contributions made by the insured persons and the return on their investments, reduced with the fees and deduction the managing company collects. Bulgarian legislation allows the existence of two types of mandatory funds (professional and general pension funds) and a voluntary pension fund. The pension savings of the members are accumulated in individual accounts. Redistribution of amounts from one account into another is not permitted.

Pension amount

The amount of the pension from a supplementary pension fund depends on:
1. The amount accrued in the individual account from contributions and the distributed investment yields reduced by the fees and deductions in favour of the managing company;
2. Gender and average life expectancy after retirement according to the approved biometric tables;
3. The term for which the supplementary pension will be paid;
4. The technical interest rate.

Pension update

The rate of the pension benefits received from supplementary pension funds is updated in line with the realized yield on investment of the pension fund assets. The period and manner of updating pensions is described in the regulations of the respective fund; it can be made monthly, quarterly, annually, etc.



Regulative documents that the governing bodies of the pension insurance companies adopt to regulate the organization and the activity of the respective fund. The regulations and any amendment to them shall be approved by SISA. The pension insurance company shall inform the insured about any changes to the regulations of the funds. Upon disagreement with amendments made any member can terminate his/her membership and switch to another pension fund.

Right to transfer amounts from the individual account to third persons

The insured persons have the right to transfer assets accrued in their individual account from individual contributions, or a part thereof, to their spouses, to relatives in direct dependency or ascendancy from the first or the second degree, no more than once in a calendar year provided that the purpose of the assets is preserved.

Right to transfer the amount accumulated on the individual account into a pension

fund managed by another pension insurance company
The insured person has the right to transfer the amounts accrued in his/her individual account from one pension fund to another managed by another pension insurance company once in a year and without limitations in case of disapproval with any amendments to the funds regulations.

Rescheduled payment

A form of payment of the amount accrued in the individual account in several portions in accordance with the contract concluded between the insured person and the pension fund.


Supplementary Voluntary Pension Insurance Act

An Act regulating the social relations connected with: 1. supplementary voluntary pension insurance; 2. establishment, licensing, transformation, termination and liquidation of pension insurance companies; 3. establishment, licensing, transformation, termination and liquidation of pension insurance funds; 4. state insurance supervision over supplementary voluntary pension insurance activities; 5. protection of insured persons.

State Insurance Supervision Agency

A specialized government body the primary primary function of which is licensing and control over the companies dealing in social (pension, health and unemployment) insurance. It is directly subordinate to the Council of Ministers. The rights and the obligations of the Agency are described in Chapter Three of the Supplementary Voluntary Pension Insurance Act.

Social Insurance Code

A legislative act passed by the National Assembly regulating the social relations concerning:
1. public social insurance against general sickness, employment injury, occupational disease, maternity, unemployment, old age and death;
2. supplementary mandatory social insurance for an early retirement pension for people working under I and II category labor conditions, and a supplementary pension for old-age for the people born after December 31, 1959.

Social insurance contributor

A social insurance contributor shall be any natural person, legal person or a division thereof, as well as any other organizations obligated by law to make social insurance contributions for other natural persons.

Statement of the Insurance Account

In conformity with the provisions of law by April 30, every calendar year the pension insurance company is obliged to send to the members of the funds, free of charge, a statement of their individual accounts. The statement contains the contributions made during the previous year by months, the fees charged, the distributed yield, the closing balance and the pension rights of the insured person.

Supplementary Pension Insurance Council

An administrative body established at SISA. Resolves on issuing and depriving of licenses, mergers, incorporation, separation and restructuring of companies engaged in supplementary social insurance, opening procedures on insolvency, approving the lists of depository banks. It consists of 7 members: the Minister of Labor and Social Policy, the Minister of Finance, the Minister of Justice, the Minister of Internal Affairs, the Chairman of the Securities and Stock Exchange Commission and the Chairman of SISA. A representative of BASPSC can take part in its sessions with a deliberative vote.


Technical interest rate

The estimated minimum return on investments of the pension fund assets. Used in calculating the amount of the first pension and upon updating the pensions received. Its rate is determined by the governing bodies of the pension insurance company.

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