Social Ministry considering new pension adjustment formula

11/01/15 10:26
(http://www.klassa.bg/)

Social Ministry considering new pension adjustment formula

As of 2017 pensions will be formed and adjusted using a new formula. Every year they will go up on 1 July, but not following the Swiss rule now in place, social ministry officials said for the Bulgarian National Radio. According to calculations, in 2027 pensions will be 40 percent higher than they are now.

The faster rate of growth of pensions will be attained over a period of 10 years. Every year of pensionable service will, at the end of this period, be considered as 1.5 in the calculation formula; now it is considered as 1.1. The coefficient will go up gradually, said Deputy Social Minister Nikolay Nikolov and added:
“The pension reform envisages a growth of the weight each pensionable year carries.”

This automatic mechanism will be applied every year over a ten-year period until a coefficient of 1.5 is reached. This approach to pension adjustment and increase will ensure a faster growth rate of new pensions, but will, albeit more slowly, push up older pensions as well.

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Публикувана на 11/01/15 10:26 http://www.klassa.bg/News/Read/article/259638_Social+Ministry+considering+new+pension+adjustment+formula