Transferring Resources between the First and the Second Pillar in the Context of Development of the Pension Model in Bulgaria
Transferring Resources between the First and the Second Pillar in the Context of Development of the Pension Model in Bulgaria

Summary/Abstract: The evolution of pension models is a continuous and long process since social issues acquire new dimensions and the social security systems should respond in a timely and adequate manner to these challenges. Changes in the pension model are an expression of the efforts to improve it but this needs to be a well-thought-out and consistent process since it is likely to give rise to mistrust on the part of insured persons. The results of any reform of the pension model are postponed in time making difficult the current assessment of the effectiveness of the changes that have been made. The present study examines some of the more significant changes in the Social Security Code with emphasis on those concerning the possibility of transferring funds from a universal and professional pension fund to the State Social Security System. The implications of this transfer for the Bulgarian social security model have been analysed and an attempt has been made to seek for more optimal alternatives for changes in the pension system contributing to the attainment of adequate retirement incomes, which is one of the fundamental principles enshrined in the European Pillar of Social Rights.

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