Borisov Pushing Bulgaria Retirement Age Increase
- New Europe Investor
- May 13, 2015
Bulgarian Prime Minister, Boyko Borisov is continuing to push the issue of pension reform in Bulgaria. This is despite it causing major tensions within his own government.
Labour Minister, Ivailo Kalfin put forward a reform proposal in March. His plans were to extend the retirement age gradually every year, all the way to 2037 in order to reach a number of goals.
Firstly, the government want to bring the retirement age to 65 for both men and women. Currently, it is broadly speaking, 63 for men and 60 for women.
Other reforms include bringing in a retirement age for all. For example certain professions, such as the armed forces and other heavy industries do not have a stated retirement age. Instead, a requirement is set of 27 years experience.
Kalfin has also proposed raising the mandatory contributions and cracking down on fraudulent early retirees, suspected to be a widespread problem in Bulgaria.
Prime Minister Borisov is pushing the issue despite the tensions.
He was quoted as saying that the ‘demographic crisis’ in Bulgaria is creating a pension funding crisis. He added that government increases in health spending will result in people living longer, strengthening the need for reform further.
The leader of the ABC party, Georgu Purvanov, has hinted he could withdraw support for Borisov’s GERB party and his coalition partner, the Reformist Party.
The two parties failed to make the 121 seats required in last years election. In the end, the centre-left ABC agreed to support the cabinet.