The raising of the minimum and maximum insurance burden is a fact that happens every year with the respective budgets and is due to the distorted structure of the pension system, which is overloaded.
This was said by the economic advisor to the Bulgarian Industrial Association Shteryu Nozharov in the studio of “Your Day” on NOVA NEWS.
He pointed out that the system should be modernized according to the Western model.
The Vice President of the Confederation of Bulgarian Trade Unions Todor Kapitanov pointed out that the Swiss rule should continue to be applied and that at this stage there is no reason to increase the length of service and the retirement age.
Nozharov is of the opinion that there should be a distinction between pensions, and not those with the functions of social assistance. He added that the real pension is the one for insurance length of service and age, and for the others there should be a debate – whether they are social assistance or pension, because then the concept of financing changes.
The economist also said that only the first pillar cannot bear the burden when there are three pillars, adding that the third one practically does not function.
In his words, multi-funds should also be introduced.
Kapitanov is of the opinion that the principle of contribution – rights should be introduced in order for the pension system to be sustainable.
He pointed out that a serious problem is the shadow economy, which is about 22% - nearly 50 billion leva, which is not included in the budget.
Nozharov also said that the shadow economy is a serious problem that should be the subject of attention from the state policy.