Business: investment in preventive control of the assets of pension funds

To review legal and other regulations establishing conditions for effective and especially – for preventive control of the Financial Supervision Commission in the investment of assets of pension funds. This provides the Bulgarian Industrial Association (BIA) in a letter to Finance Minister Simeon Dyankov and parliamentary committees on budget and social policy. The aim is to provide opportunities for rapid action, rapid response and to carry adequate liability of the FSC and risk in critical situations, especially when signs of financial and economic crisis. According to BIA, the State must offer a package of pension funds investment instruments to provide a higher return guaranteed by the state in risk.
The letter asks the state employers’ organizations, as other employers to pay for civil servants, including of military personnel from the MoD, the Ministry of Interior officials and employees of the justice system due contributions. These costs must be borne by the budgets of relevant departments, instead of being included in the total subsidy for DOO. State officials from his party we have to import every month as all other insured personal contributions at the expense of obtaining their salary.
BIA offers to adopt a policy of gradual reduction in the amount of contributions, which are linked to economic growth and conditions for balancing the state budget and budget DOO. It is also to be reduced temporarily for a period of 2 years contribution to universal pension funds from 5% to 2%. During this period, the funds due to the reduction of these contributions to be transferred to funds DOO. Chamber of business argue that they have a consistent and principled position of support for the establishment and development of the equity principle in the pension. BIA is actively involved in creating and updating the regulatory framework for pension funds, shareholder and founder is one of the big pension companies. In this sense, the proposal has the character of an interim measure designed to help stabilize and strengthen solidarity fund in terms of depth economic crisis. Furthermore, the contribution on behalf of insured persons is maintained and will continue to accumulate in their personal accounts in the fund.

––––––––––––––––– ––––––––––

Finance