04/19/12 18:33
(http://www.klassa.bg/)

Totyu Mladenov: We will raise the minimum pension in June

“As of June 1, the minimum pension will be increased to BGN 145 and, as of July 2013, all pensions will be raised in accordance with the inflation rate. So, the inflation rate for 2012 will determine the pension increase in 2013,” announced Totyu Mladenov, Minister of Labour and Social Policy for TV7 yesterday. “We are looking for other options and if there are higher revenues, we will be able to afford a further increase as well,” he added.

"We have been implementing the reform of the pension system for three years. We were left in a position to have no money to pay pensions. We try to make the system sustainable in order to be able to pay  pensions. We succeeded, at a time of a crisis,  to increase the supplements to widows' pensions and the minimum pension. We made great efforts to raise the minimum wage in September and, as of May 1, 2012, it will be increased again to BGN 290," said Mladenov.

The Minister  of Labour and Social Policy refused to comment on the statement of the opposition that the minimum wage increase is a pre-election move.

“The demographic crisis forced us to seek legal options allowing people to work longer. The revenues in this system come from social security contributions, paid by employees and businesses,” he explained.

According to the estimates for 2013-2015, published on the website of the Ministry of Finance, the Government plans to raise the minimum pension by 6.55% as of June 2012, while an indexation is foreseen for the next year.
The document provides for a pension increase of 2.1% in 2013 and, in 2014-2015, the growth rate will be 2.4% and 2.5%, respectively. The data shows that the funds allocated for 2013 are BGN 7.508 bn,  and those for 2014 and 2015, these are BGN 7.807 bn and BGN 8.104 bn, respectively. Moreover, in 2014 the ceiling on pensions will be revoked. Currently, it is BGN 700 and the people who now pay their social security contributions on higher wages will receive higher pensions when they retire.
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