14.12.2021
HOW WILL THE PENSIONS FROM CHRISTMAS BE RECALCULATED?
From December 25, 2021, important changes in the pension legislation will come into force, which will affect the amount of labor pensions. From this date, the amount of all pensions related to employment, which are granted with a starting date after December 24, 2021, will be calculated with a new weight for the years and months of service without conversion, the NSSI announced.
Until the amendment, a percentage of 1.2 for each year of insurance experience is applied, which from December 25, 2021 increases to 1.35 percent for each year of insurance experience without conversion, as well as the respective part of these percentages - for each month of insurance experience.
For pensioners who have insurance length of service under the conditions of the first and/or second category of work, the difference between their total length of service converted to the third category of work and their length of service without conversion continues to participate in determining the amount of pension by 1.2 per cent for each year of insurance experience and the respective proportional part of this percentage - for the months of insurance experience.
In view of the equality of pensioners, as of December 25, 2021, the NSSI will recalculate ex officio more than 2,000,000 pensions and allowances (including seniority and old-age pensions, disability pensions, survivors' pensions and widows' allowances) granted with starting date until 24 December 2021, inclusive, and in this recalculation the higher weight will be applied for each year and month of insurance without conversion.
The recalculation of the pensions will be carried out without changing the income from which each of them is calculated, after which its amount will be updated, recalculated and indexed in accordance with the legislation in force from the date of its granting until December 24, 2021 inclusive. The recalculation will be carried out only if it is more favorable for the pensioner.
Otherwise, the amount of the pension received until the date of the recalculation will be retained.
Individuals will start receiving the recalculated amounts of their pensions with the regular monthly payment for January 2022, and the difference between their old and new amounts for the seven days from December 25 to 31, 2021 will be paid to them.
An order will be issued for the recalculation of each pension, which will be served on the person upon request. Depending on the pensioner's wishes, the service can be performed on site at the reception of the respective territorial division of the NSSI, through a licensed postal operator by registered letter with acknowledgment of receipt or through the Secure Electronic Service System of the State Agency for Electronic Government.
Persons with a Personal Identification Code (PIC) of the NSSI will be able to make a reference to the provisions concerning their pensions on the NSSI website after the beginning of January 2022.
From December 25, 2021, the minimum monthly amount of the pension for insurance length of service and age granted to persons who have completed the full insurance length of service required by law at the time of retirement shall be increased from BGN 300 to BGN 370.
On the basis of this amount, the minimum amounts of other types of pensions related to employment are determined, such as:
With the forthcoming changes, the pensioners who receive the minimum amount of the respective type of pension will reach 1,044,000 compared to 892,000 at the moment.
The maximum amount of one or more pensions received without supplements to them also increases - from BGN 1,440 to BGN 1,500. Thus, pensioners whose pensions are limited to the so-called "ceiling" of pensions will increase from about 27,500 to over 34,000.
It is expected that while maintaining the current parameters of the macro framework, the average amount of pensions from BGN 537.50 this year will increase to BGN 580.50 in 2022, which is an increase of about 8%. The accounts also include the one-off supplement to pensions paid in 2021 to all pensioners, known as the "covid supplement".
