Without unnecessary drama, Bulgariarquote s Parliament adopted on second reading the budget of the State Social Insurance Fund for 2014. As from 1 July next year, over two million pensioners in the country will get pensions updated according to the Swiss rule . The increase is a percentage equal to the sum of the increase in insurance income and the consumer price index. Thanks to this measure, the minimum pension will rise by 4.50 levs. The increase of the required retirement age and length of service that was activated during the term of GERB, was suspended for one year.
Under these conditions about 15 thousand people will retire. It is necessary to find a political agreement to resolve persistently and for a prolonged period what happens to the pension system in the country, said Cornelia Ninova of the leftist Coalition for Bulgaria . Social Minister Ademov said he would seek a mechanism for increasing the age and service that would not depend on the will of newly elected to power. According to Ademov of this increase in 2012 the state saved almost 35 million levs of the insurance budget. His predecessor on the ministerial post Mladenov stressed out, however, that the freezing of the pension reform would be disastrous for Bulgarian citizens because it fails to offer an alternative to stabilization of the system.
Overall, the budget for pensions was adopted with a deficit of 1.78 billion levs. From revenue and transfers to the pension fund 5.99 billion levs is expected, while its expenditure ise set at 7.77 billion levs. The shortage in the fund Sickness and Maternity and Unemployment exceeds 218 million levs.
Lawmakers rejected two proposals of GERB The first was to increase by 5 million levs the budget of the Institute for Prevention and Rehabilitation. Opposition unsuccessfully requested additional 25 million levs to be redirected to social benefits, which could raise the average daily unemployment benefit from7.20 levs to 9 levs.
Winners of the new social security budget turned out to be mothers who will take on average 340 levs for raising up a child of up to two years. The minimum insurance levels for farmers and growers were fixed at 240 levs, instead of 340 levs. In the same amount 340 levs – will be the lowest salary after January 1, 2014.
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