2024-05-10 21:51:42
The Swiss rule sets the new growth because of lower inflation and a smaller rate of average insurance income
The minimum becomes BGN 575.34 from 1.07.
The Swiss rule will raise pensions from July 1 by 10%, not 11% as set out in the State Social Insurance (SSI) budget. The reason is that the official results show lower inflation and a lower rate of growth in average social security income. Exactly
the growth of these two indicators is used in a 50:50 ratio
for the determination of the Swiss rule.
The average insurance income increased by 11.3%, and inflation – by 8.6%. Thus, the classic Swiss rule gives a 10% increase in pensions, and this option will be considered by the Supervisory Board of the National Insurance Institute (NII) on May 14.
An 11% increase in pensions was set in the budget of the Social Insurance Institution, as the calculations were made on the assumption of an increase in the average insurance income for last year by 12.9% and an average annual harmonized index of consumer prices of 9.1%. Thus, BGN 1.1 billion was provided in the budget for the increase in the money of the elderly according to the Swiss rule. The lower percentage leads to a saving of BGN 100 million.
Now the minimum pension is BGN 523.04. With the 10 percent from July 1, it will become BGN 575.34. This is
about BGN 4.66 less than the initially pledged BGN 580.57.
Social security for old age will be BGN 304.40.
The pension ceiling remains unchanged – 3,400 BGN.
As “24 Chasa” explained, the forecasts of the Ministry of Finance indicate that in the coming years the Swiss rule will give lower percentage increases. Thus, from July 1, 2025, pensions will rise by 6.6%, with the minimum becoming BGN 613.04, and the average – BGN 941.43. For 2026, the formula will give a 4.6% increase, or the minimum pension for seniority and age it will be BGN 641.23, and the average BGN 984.74.
The smallest increase is expected to be in 2027 – 3.8%. This means BGN 665.59 minimum and
BGN 1022.16 average pension after 3 years
The maximum will freeze at the ceiling of BGN 3,400 for the next 3 years as well.
The main reason for the smaller percentage is that the average annual rate of inflation will slow to 2% in 2026 and 1.9% in 2027. And as it turned out, the Swiss rule is equal to the sum of 50 percent of the increase of income and 50 percent of the consumer price index.
BGN 826.85 is the average pension for March, according to the data of the National Institute of Social Sciences. The growth compared to the same month of the previous year is 11.9%, or BGN 88.10. The average pension for length of service and age is BGN 910.49, and compared to March 2023 it is higher by 99.47 BGN (12.3%).
As of March 31, 2024, the total amount of reported revenues in the state social insurance is BGN 3.04 billion, which represents 23.6% implementation of the plan for the year.
The revenues received by the LLC amounted to BGN 408.1 million. more compared to the same period in 2023.
However, expenses are over BGN 2.7 billion more than revenues – BGN 5.713 billion. That is why the transfer from the central budget is BGN 2.734 billion for the first 3 months of the year.
The number of pensioners for March 2024 was 2,040,181, or 11,268 (0.6%) more than in March of this year. – a new trend of increase, which appeared due to the more favorable conditions for an expert decision from TELK, which in turn brings a disability pension.