Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria: Pressure on the grey sector will ensure revenues for the pension system

- Mr. Dimitrov, according to the recent Eurostat statistics, 42% of Bulgarians are threatened by poverty and social exclusion. What is your opinion on this statement?
- This, once again, proves our worries and concerns that, in Bulgaria, the poor are becoming poorer but the rich do not become richer. And that the gap between the people with the lowest income and those from the high-income groups is continually growing and the trend is negative. All this shows that people get poorer and poorer, and all statements about increased savings, on the part of the Minister of Finance, are not true.

- Disputes over the pension reform have calmed down but the feeling that problems have not been addressed properly remains. What should be done in order for a sustainable model to be implemented in the future?
- Our meeting with Prime Minister Boyko Borissov on Friday focused on two issues. We prepared suggestions together with employers that have already been implemented – the first is - continuation of the pension reform and the second - improvement of the work of the National Council for Tripartite Cooperation (NCTC), as a precondition for both trade unions to return to NCTC. The Prime Minister accepted that these packages must be considered.

- What are you going to suggest in terms of the pension system?
- The reform must continue in order to increase proceeds to the system. The measure which was implemented without our consent - the raising of the retirement age - will not bring more money into the system. Therefore, we left NCTC. The problem is that larger funds are needed for the proper operation of the system. This means that pension contributions must be collected from all, not just from those who pay. Pressure on the grey sector is needed.

- Do you still insist that the non-payment of social security contributions should be criminalised?
- Yes, of course, when it comes down to payments under the table. And the National Revenue Agency has to make more efforts in order to dramatically increase the collection of pension contributions. This can be done via audits and the active implementation of eventual criminalisation proceedings. The conditions for early retirement should be made equal for the different groups. At present, more severe conditions for early retirement are being applied towards industrial workers, compared to people employed in the armed forces.

- The retirement age of military officers and policemen was increased.
- This is not true! The retirement service length and the age limits for military officers were increased, but these remained the same for policemen. The State should start paying for the military as well. At present, the difference between the rights used and the respective cumulative contribution by the State for the military administration is 15%. The State must pay 15% more in social security contributions for these structures in order to equalise the rights that they are granted with the available funds. There should be no drain of resources from the system.

- You are still the acting President of CITUB. The Congress of the trade union is in early May this year. Do you expect competition for the President’s position?
- It is not fair to ask me this question. If I must answer, I will say that I have already been nominated by our highest authority - the Coordinating Council, which includes more than 100 people. My candidacy was supported unanimously by all branch and regional structures.

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