Nationally represented employers’ organizations and both major trade unions in this country – the Confederation of Independent Trade Unions /CITUB/ and the Podkrepa Trade Union that are also members of the National Council for Trilateral Cooperation have agreed on the proposals for continuing of the reform in the retirement system and a more effective social dialogue. According to representatives of the business and the trade unions, if measures are not taken now, the system may face very serious difficulties in a short term. The joint proposals include payment of social security installments for all kinds of labor, i.e. working pensioners to pay social securities too, along with incrimination of the lack of paid social securities. Thus steps will be taken towards the reducing of the huge deficit in the budget of the National Social Security Institute /NSSI/ that is now supplemented by the state.
© Photo: Tania Harizanova
Mr. Bozhidar Danev, Chair of the Bulgarian Chamber of Commerce, gives us details on some of the measures proposed:
“Employment is always accompanied by social security and payment of installments of this kind. So the respective legislation has to be précised – the Social Security Code that allows employment without the payment of these installments. I. e. retired people also have to pay social security installments, once employed.”
The current legislation gives the right of a choice to working pensioners, regarding these installments. Both the trade unions and the business state clearly that social securities should be paid for all labor incomes. In their opinion the system of retirement will become more stable via the clarification of the way for payment and the rate of the installments, paid by servants at the interior, defense and justice ministries that have the right of an earlier retirement. There is a lack of balance between revenues from social securities and expenses for pensions of those that have the right to retire earlier. Practically they pay social security installments for a length of service that is shorter than the one of the rest labor categories, receiving at the same time pension for a much longer period. Employers and trade unions also insist the right of an early retirement in these ministries to be determined according to the risk that the employees are exposed to. Thus the current right of an earlier retirement for all people, working there, will drop. Perhaps the most important proposal is for a change in the Criminal Code, sanctioning the lack of social security installment’s payment. I.e. the interest for the delay to be 10 percent plus the base rate. There are other proposals too, aiming at the stabilization of the system. Just to remind, the government decided end-2011 to freeze all pensions, given earlier with the idea the budget of NSSI to be stabilized. Employers and trade unions want the introduction of a fair formula for calculation of all pensions and not only the latest ones.
“The updating of pensions to be on a regular basis, consequently for all pensions, no matter their size,” Mr. Danev says. “The way and criteria for granting of disability pensions should be précised too. All social payments with no social security character should be taken out of the retirement legislation.”
The proposal on the disability pensions comes due to their rapidly increased number over the past years. There are suspicions that some of those are not legally received and that has harmed the budget of NSSI. The business and trade unions suggest the law to be changed so that the final decision on the granting of disability pensions to be taken by NSSI experts.
The social dialogue at the National Council for Trilateral Cooperation between representatives of the state, trade unions and employers was ruined end-2011. Trade unions left a sitting then, protesting against the sudden changes in the system of retirement that are discussed in advance at the council. We are talking about the proposal of MPs from the governing GERB party for increasing of the retirement age with 4 months per year as of 2012. The parliament voted the proposal that hadn’t been discussed at the council. The social security length of service also increases by 4 months per year as of 2012, till reaching 63 years for women and 65 for men, working under the conditions of the third, most common labor category. The restoration of social dialogue will go through transparency, both trade unions and employers state. In their words the opinion of all social partners should be taken into consideration, before the proposal for changes in the Labor Code and the Social Security Code enters the parliamentary hall for voting. Soon a website of the trilateral council will provide publicity for all proposals, discussed and voted at its monthly sessions.
English version: Zhivko Stanchev
