University of agribusiness and rural development, Fiscal policy, globalization and economic growth: sustainable development challenges and perspectives

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PROBLEMS OF THE BULGARIAN PENSION SYSTEM
Pavlina Dimitrova

Last modified: 2020-02-26

Abstract


The radical reform of the system started in the period 1999-2000. The reasons for it were: Low pension rates; payment of pensions in almost the same amount for all, irrespective of the type of labor to be paid, the income replacement rate is frozen around 27% -28%. A refusal and escape from this type of system begins with the participation and support of the gray economy. What is the state of the system in the last 5 years will be discusseded in this report. The disadvantages of the reformed model will also be discussed.


Keywords


pensions, income replacement ratio, problems in the pension system, insurance