PENSION REFORM IN BULGARIA – STAGES, GROUNDS AND PHYLOSOPHY Dr. Hassan Ademov Chairman of the Labor and Social Policy Commission of Bulgarian Parliament. PENSION REFORM IN BULGARIA: STAGES. STAGE OF CAUTIOUS PARTIAL REFORMS ( BACKGROUND TO RADICAL REFORMS ) – 1990 – 1999
PENSION REFORM IN BULGARIA – STAGES, GROUNDS AND PHYLOSOPHY Dr. Hassan AdemovChairman of the Labor and Social Policy Commission of Bulgarian Parliament
Based on the World Bank’s concept for a multipillar social protection system taking into consideration the national traditions and specifics:
Outcomes of the parametric reforms in the first pillar
1 Participation in UPF is mandatory for all persons born after 31.12.1959 (a person may participate simultaneously in all three types of PF)
2 At the end of 2006 pension assets(savings) form 6.4% of the Bulgarian population’s financial wealth.
Income replacement rate from the three pillars (ultimate goal of the reform) – 70 - 80 percent, incl.
Risks relating to the solidarity pillar
Risks regarding the fully-funded pillars
Two alternatives are discussed publicly: