The
supplementary compulsory pension insurance is the second pillar of the pension
system and entitles people born after 31.12.1959 to receive second
supplementary pension and people working under the conditions of first and
second category of labor to receive pensions for early retirement. This kind of
social security is regulated in Section Two of the Social Security Code (SSC).
It is implemented through participation in universal and/or professional
pension funds which are established and managed by licensed pension insurance
companies. The participation in SCPI Funds is made possible by means of
submitting individual applications not later than three months after a social
security liability has become chargeable or on the grounds of official
distribution, the manner and the procedure of the latter shall be defined by a
joint instruction of the Financial Supervision Commission and the National
Revenue Agency.
Basic
principles:
.....Compulsory
participation;
.....Legal
independence of the pension insurance company and of the universal and
professional pension funds;
.....Transparency,
divisibility and exclusivity of the activity;
.....Authorization
regime and public regulation;
.....Mandatory
periodic accountability and disclosure of information;
.....Loyal
competition amongst pension insurance companies;
.....Representing
the interests of the insured persons;
.....Provided
through pension schemes on fully funded principle based on the defined
contributions;
.....Personal
approach in social security – each insured person has his/her individual social
security number and his/her contributions are accumulated in an individual
social security lot.
Insured
persons:
.....It
is mandatory that persons born after 31.12.1959 insure themselves for
supplementary pension in a universal pension fund in case they are insured in
the Pensions Fund of the State Social Security.
Exception:
Employees of the National Intelligence Service, the Military Information
Service at the Ministry of Defense and the Special Courier Service at the
Ministry of Transport and Communications shall not be insured for supplementary
pension in a universal pension fund.
.....It
is mandatory that persons working under the conditions of first and second
category of labor, who are insured in the Pensions Fund of the State Social
Security shall be insured also in a professional pension fund for early
retirement, regardless of their age.
Rights
with regard to being insured in a Supplementary Compulsory Pension Insurance
Fund
.....The
pension insurance in a universal pension fund entitles the persons to:
- receive supplementary life pension for
old age after acquiring the right to receive retirement pension as per Part One
of the Social Security Code or, at the request of the person, supplementary
life pension for old age five years prior to coming to the age for acquiring
the right to receive retirement pension as per Part One of the Social Security
Code, under the condition that the accumulated funds in the individual lot of
the person allow granting such pension at an amount not lower than the amount
of the minimal retirement pension;
- receive one-time payment of up to 50%
from the funds accumulated in the individual lot, in case of permanent loss of
working capacity over 70.99%;
- receive a lump sum or deferred payment
of amounts to the heirs of a deceased insured person and the heirs of a
deceased pensioner under the conditions and in accordance with the procedure
established by this Part.
.....Pension
insurance in professional pension fund entitles persons to:
- receive fixed-term professional pension for
early retirement for persons working under the conditions of first and second
category of labor;
- receive lump sum payment of up to 50% from
the funds accumulated in the individual lot in case of permanent loss of
working capacity over 70.99%;
- receive a lump sum or deferred payment of
amounts to the heirs of a deceased insured person or a deceased pensioner under
the conditions and in accordance with the procedure established by this Part.
Untill
31.12.2014 persons working under the conditions of first and second category of
labor may retire on the grounds of §4, Para 1 of the Transitional and Final
Provisions of the Social Security Code (TFP of SSC), and the funds from their
individual lots shall be transferred to the Pensions Fund of the State Social
Security and their pension shall be paid by the Territorial Directorates of the
National Social Insurance Institute. Once this deadline expires, the persons
willing to retire earlier shall receive pensions from the respective
professional pension funds until they become of the age specified in Art. 68 of
the SSC. After they become of that age – they shall have the right to receive
pensions from the National Social Security Institute.
Contributions:
Amounts
of contributions for state social security (SSS), for supplementary compulsory
pension insurance (SCPI) – depending on the type of the insured persons and the
distribution between the contributor and the insured person. See the Table for
2012 .
The
contributions shall be transferred to the relevant SCPI account of the
competent Territorial Directorate of the National Revenue Agency in conformity
with the respective codes for each kind of payment.
Insurable
earnings:
The
contributions for SCPI shall be paid on the basis of the income for which state
social security contributions are due, with the exception of Art. 9, Para. 6
and Para. 7 of the Social Security Code. They are paid on the basis of an
income not lower than the minimum monthly insurable earnings and not higher
than the maximum insurable earnings, defined by the State Social Security
Budget Act. The insurable earnings on the basis of which social security
contributions are effected are regulated in the Ordinance on the Element of
Remuneration and the Earnings for which Social Security Contributions are
paid.
The
contributions for the SCPI shall be transferred simultaneously with the
contributions for the State Social Security.
