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Bulgaria Ties Pension Amounts with Years of Service

Tuesday, Jun 01, 2010

Bulgaria's Minister of Labor and Social Policy, Totyu Mladenov, informed Monday that the cabinet had made significant progress in the pension reform negotiations with the labor unions and the employers.

One of the measures in the reform is the establishment of a retirement bonus system, which will tie the amount of the monthly pensions with the number of years of service with women, who have worked more than 37 years, and men – more than 40, receiving more money.

Mladenov said this measure will reduce the early retirements, especially of employees of the Interior and Defense Ministries.

Another measure is the introduction of special tax deductions for employers, who offer their workers additional retirement contributions in voluntary retirement funds as part of the benefits package.

Last week Defense Minister, Anyu Angelov, reported that a working group from the Ministry of Labor and Social Policy and the National Social Security Institute is preparing a bill to establish a military retirement fund.

Source: http://novinite.com