The Minister of Social Affairs suddenly promises reform of the pension system

Minister of Labor and Social Policy Borislav Gutsanov promised reform of the pension system next year. The Roadmap for improving the pension model, which, according to a decision by the National Assembly, was supposed to be ready in November, is now expected to be ready then. The announcement was made after the end of the debates in the National Assembly on the revised draft budget for state social security (SSS), which was adopted at first reading with 122 votes in favor and 89 against.

Gutsanov's statement represents a U-turn on what he had been explaining all year long – that the Roadmap does not propose reform, but only an opportunity to build on and improve the pension system. Before parliament, he touched on the subject of the Roadmap, which, through his own fault, no one in the country has seen yet. He even went so far as to accuse MPs of commenting on the roadmap without knowing its parameters.

Earlier this week, the minister announced that two measures that are likely to be the focus of the roadmap are related to the minimum social security income and the problem with the Technical Expert Medical Commissions (TELK).

Why did none of you have the courage to come out and say all these years, if there really are problems, as I believe there are? Why didn't you have the courage to do so? And now you are commenting on whether or not there will be reform. Yes, there will be reform, as long as it turns out mathematically that this is the case, as is my subjective opinion," Gutsanov pointed out.

He emphasized that the draft budget provides for a "thawing" of maternity benefits in the second year and an increase in the amount to almost BGN 900. (Editor's note: but only in 2026, after which the amount will be frozen again until 2028), an increase in the minimum wage, and compliance with the so-called "Swiss rule" for modernizing pensions. "It is not enough, but it is what can be done.

It is not enough, but it is what can be done. And many of you commented on reforms, so why didn't you do them when you were in power?" he asked.

Otherwise, the debate on the draft state social security budget was rushed, with brief statements. Elisaveta Belobradova from "We Continue the Change - Democratic Bulgaria" said that the budget lacks reforms, including those in the TELK system.

The minister failed to propose any reforms to the pension system after analyzing it, and you had a year to do so. None of this happened, i.e., we have no results for the reforms in the budget," she said from the podium.

Hasan Ademov from the Alliance for Rights and Freedoms said that the Roadmap provides the basic guidelines for how the Bulgarian pension model should develop from now on.

The actuarial calculations of the National Social Security Institute, the report of the Ministry of Labor and Social Policy, and the Economic and Social Council give clear signals that there must be changes in the system, but these changes have been postponed until 2026. I am convinced that they will not happen then either, because these are unpopular measures," Ademov commented.

Alexander Koichev from Vazrazhdane said that this draft budget is also not aimed at combating poverty and the demographic crisis. He reminded that the increase in the social security burden has not been cancelled, but only postponed until 2027-2028.

Translated with DeepL.