In this country retirement income reaches just 39 percent of the average income per person before retirement, while the EU average is 56 percent. Worse in this respect is the situation in Ireland and Estonia, where the rate is 27%. The data come from a European Commission report presented by the Employment, Social Policy, Health and Consumer Affairs Council. Bulgarian pensioners are at the greatest risk of poverty and social exclusion in comparison to other European countries. In Bulgaria almost 60 percent of people aged over 65 are at risk of falling into poverty, while the average level in the EU is 18 percent. Currently the draft budget for 2016 is being prepared in Bulgaria. Is there a possibility for a significant pension rise? Deputy Prime Minister and Minister of Labour and Social Affairs Ivaylo Kalfin answered our question:

 

"The pension system does not allow for a steep rise of pensions. The average replacement rate will be reached when all the changes we made to the Social Security Code become adopted. The pension reform would guarantee a 40-percent rise, without changing requirements and this will be a much more adequate retirement income in relation to the income received before that. In order for this to happen, time is needed. If a reevaluation to all pensions was done next year, this would cost more than 1/3 of the budget of the Social Security Fund. The budget is about 5 billion euro, out of which 2.5 billion come as subsidies from the budget. If pensions were raised this would mean that some 2.8 billion euro more must come from the budget. We do not have this ability and it is better to have a more realistic goal. Pensions will be gradually rising until they become more adequate. Some 500 million euro more will be used for raising old pensions.”

 

The Ministry of Labour and Social Policy has been preparing a new law on social services that changes the whole philosophy of social assistance and social services.

 

“The idea of this law is to separate social payments from social assistance services. Social payments help people with low incomes, while social services are something that we all need. Regardless of their income, some members of our society need social assistance. That is why there are homes for the elderly, day centers, community support centers that help children with disabilities and provide assistance at home. These are services that everyone could use. The point is that they will be subsidized when people with low incomes use them, while those who have good incomes would pay for them."

 

There is an idea that the state should provide funding to private companies that provide social services if they were selected by the people. Older people will be free to choose retirement homes and state funding will be directed there. A system for monitoring of the quality of social services will be created and the needs for specific social services depending on the demographic profile of the population will be mapped.

 

At the end we are to tell you more about a specific case. The retirees who worked in Tunisia should have some more patience. A social security agreement that guarantees pension rights of people working in Bulgaria and Tunisia is expected to be ratified by the parliaments of both countries.

 

“Currently there are Bulgarians, working as teachers and doctors in that country. In many cases they receive lower payment in comparison to their Tunisian counterparts. Discrimination conditions will end following the signing of this agreement.”