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Plamen Yordanov, Tanya Ilieva, Yordan Yordanov
THE SOCIO-ECONOMIC POTENTIAL
OF VOLUNTARY PENSION INSURANCE
IN BULGARIA
Abstract:
The aim of the study is to characterise the overall state and outline the development opportunities of voluntary pension insurance in Bulgaria. Research publications and officially disclosed empirical data for the period 2002 – 2024 have been used. The study examines changes in the number of insured individuals, the amount of the insurance contribution and the accumulated funds, the achieved returns, the share of net assets relative to GDP and to the total amount of household deposits, as well as the growth rates of managed assets and the amount of the insurance contribution compared to the growth rates of GDP, the average insurance income, and the amount of household deposits. It is concluded that voluntary pension insurance has not managed to provoke the desired widespread interest. The possible reasons for this are identified, and suggestions for its future development are outlined.
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Plamen Yordanov
AGE AS A DETERMINANT OF PENSIONS FOR INSURANCE PERIODS AND OLD AGE IN BULGARIA
Abstract:
Age is one of the qualifying conditions which entitle insured persons to receive cash benefits from insurances for old age. Nevertheless, at this stage, the practice of linking the amount of pensions to the age at which they are awarded is rather limited in pensions insurance practice. The objective of this research is to study the significance of age to the pension insurance systems of EU states and hence propose a mechanism which makes it possible to link the amount of pensions for insurance periods and age in Bulgaria to the average life expectancy after retirement.
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Rumen Erusalimov, Tanya Ilieva
SUPPLEMENTARY PENSION INSURANCE – INDIVIDUAL OR COLLECTIVE ALLOCATION OF THE PENSION FUND
Abstract:
Three financial coverage systems are known and applied in the theory and practice of pension insurance: cost coverage, capital coverage and premium coverage. These systems show how operating pension costs will be allocated over time as well as among those insured. The common thing between them is that they are based on a large aggregate insurance and on the principle of mutual assistance and solidarity between the participants. In the cost coverage system and the capital coverage system solidarity encompasses all age generations while in the premium coverage system the principle of mutual assistance is spread over a particular age generation.
Some of the regulations in the Social Security Code make it impossible to apply the financial systems already mentioned in supplementary pension insurance. This strongly impedes actuary calculations and the effective allocation of the accrued pension funds.
The results obtained from the numerical example calculated in this article clearly show that it is necessary to reconsider certain passages in the Social Security Code and consequently to proceed from an individual to a collective allocation of supplementary pension insurance funds.
