Following months of tough debate, the Bulgarian Parliament has adopted significant changes to the country’s current three-pillar pension system. The changes aim to stabilize the system’s financial profile and improve fund adequacy levels. Significantly the pension age will rise, the period for required insurance contributions will lengthen, the level of contributions will also rise, and savings from pillar two mandatory fully funded supplementary private pension insurance will be able to be moved to the pillar one mandatory public Pay-As-You-Go insurance.
Normal retirement age goes up. Currently normal retirement age for workers in the most common category 3 of labor is 63 years and 8 months for men and 60 years and 8 months for women. This will rise progressively albeit at different rates to reach 65 for both men and women by 2037. The male rate will be a 2-month increase for 2016 and 2017 and a 1-month increase per year thereafter, whilst for women the rate increase will be by 2 months per year from 2016 until 2029 and then by 3 months per year until 2037 by which time 65 years will have been reached.
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