Independent Trade Unions’ Congress of Bulgaria insist on an urgent meeting between employers, unions and the government, in connection with the intention of the government to change the amount of retired pay.
This was announced by the national secretary of the union Asya Goneva.
According to them, the term „recalculation“ sounded extremely unprofessional. They propose that the minimum retired pay next year be 45% of the minimum wage (or BGN 292.50). The increase had to take place on the basis of the contribution of the insured persons, the amount of the insurance income on which they were insured, as well as the duration of the insurance.
You can read the four points of their full position on the topic here without editorial intervention.
- The public announcement of intentions for changes in the retired pay insurance, which have not been previously subject to cooperation and consultations with the social partners, is inadmissible and contrary to the established international and European norms and practices. The union recognizes the right of politicians to discuss and consider various options for improving retired pay, but insists that this be done in compliance with the law (Article 3 of the Labor Code), as well as the commitments made by the Government with the National Tripartite Agreement of June 17. 2020 (Section V, items 1 and 2)
- For years, the Independent Trade Unions’ Congress of Bulgaria has argued that the only correct and fair approach to increasing retired pays is by increasing the contribution / ratio (now 1.2) of each year of service, which takes into account the insurance contribution of each insured person, respectively retiree. In this regard, every year during the discussion of the budget of the State Social Security the Confederation argues and gives concrete proposals, both for additional revenues and for increase of all retired pays by increasing the mentioned coefficient. The union is ready with its proposals for 2021 (increased income from contributions, minimum retired pay at 45 percent of the minimum wage for the country, maximum insurance income, increased with the growth of the minimum wage, increased maximum retired pay, etc.), but is waiting for the parameters of the macroeconomic forecast of the Government in order to comply with their specific estimates.
- Independent Trade Unions’ Congress of Bulgaria will remain strongly committed to proposals to increase the adequacy of retired pays, but strongly opposes the so-called. recalculation, which, contrary to all rules, redefines retired pays granted and paid for decades, applying for this purpose the insurance income formed in the last few years (2019, as reported by the media) by current employees. This approach violates basic principles of insurance, as it breaks the link between contribution and rights and „forces“ solidarity under the pretext of increasing the lowest retired pays. Contrary to all logic, some elements of the contribution (the individual retired payn coefficient) remain determined on the basis of the income during the employment of the persons, and others (the insurance income used for the calculation of the retired pay) will subsequently change. with one that is formed in the period long after retirement. The trade union does not know the legislation and practice in the countries with organized solidarity insurance systems, which would allow multiple determination of a new amount of retired pays when applying different and incomparable initial parameters. The maintenance of the purchasing power of the granted retired pays is massively carried out by the states through the so-called modernization in taking into account the inflationary processes and in view of the increase of the public wealth and / or insurance revenues.
- The so-called recalculation, based on a randomly selected average insurance income (for 2019, as reported by the media), will be a sure way for people working and insured today to lose interest and incentive to insure on their real income. They will expect and insist that in time their retired pays will be re-determined, applying insurance income, in the formation of which they did not participate. Thus, the serious share of the gray economy and income evasion will receive a „field“ for development.
The Independent Trade Unions’ Congress of Bulgaria calls on responsible politicians and institutions to attract the expertise of professionals and especially the social partners before deciding and making public their intentions in the field of retired pay insurance. retired pay systems and the rules under which they operate follow well-established and ubiquitous principles, which should not be undermined in the name of conjunctural political decisions.
The Independent Trade Unions’ Congress of Bulgaria urges the Government, in accordance with the commitments made in the National Tripartite Agreement of June this year, to invite the social partners to discuss possible methods for increasing the adequacy of retired pays, improving fairness and solidarity in the functioning of retired pay insurance in the country.
