DallBogg Universal Pension Fund Bulgaria
Organization : DallBogg Pension Assurance
Facility : Universal Pension Fund
Country : Bulgaria
Website : https://dallbogg.bg/en/funds/universal-pension-fund/
| Want to comment on this post? Go to bottom of this page. |
|---|
What is Bulgaria Universal Pension Fund?
The Universal Pension Fund is compulsory for employees born after 31 December 1959 who are insured in the Pension Fund, or the Pension Fund for Persons under Article 69, of the State Social Insurance Institution (PSI), with the exception of persons who have opted to change their participation from the Universal Pension Fund to the State Social Insurance Institution.
Related / Similar Facility : DallBogg Bulgarian Pension System
Contributions to the UPF are built on a capital-based principle. The contribution rate is 5 per cent of the insurance income, divided between the employer (2.8 per cent) and the employee (2.2 per cent). Contributions and the returns on their investment are accumulated in individual accounts of the insured persons.
Insured Persons’ Rights
The purpose of the supplementary compulsory pension insurance in the Universal Pension Fund is to provide supplementary income by providing a supplementary old-age pension for life upon becoming entitled to a retirement pension from the State Social Insurance.
The insurance in the DallBogg: Life and Health Universal Pension Fund entitles to:A supplementary old-age lifelong pension – representing a monthly payment of an amount defined in the pension contract, payable to the person from a certain date until the end of his/her life. This amount cannot be less than 15 per cent of the minimum amount of the retirement pension under Article 68, paragraph 1. 1 of the Social Insurance Code (SIC) on the date of its determination.
Types of Bulgaria Universal Pension Fund
The pension can be of three types:
** lifelong pension without additional conditions
** lifelong pension with a guaranteed payout period
** lifelong pension involving deferred payment of part of the funds in the account until the insured person reaches a certain age.
Deferred payment of the amount accumulated on the individual account – in case of acquiring the right to a supplementary old-age lifelong pension and when the funds on the individual account of the insured person, including after supplementation in accordance with Article 131, paragraphs 2-5 of the SIC, exceed three times the amount of the minimum retirement pension under Article 68, par. 1 of the SIC, but are insufficient for the granting of a life pension for old age in the minimum amount prescribed by the law.
One-time payment of the amount accumulated in the individual account – in the event of acquiring the right to a supplementary old-age lifelong pension and when the funds in the individual account, including after supplementation in accordance with Article 131, para. 2-5 of the SIC, are less than three times the amount of the minimum retirement pension under Article 68, para. 1 of the SIC. One-off or deferred payment to the heirs of a deceased insured person and a pensioner.
Amount of the Supplementary Lifelong Pension
The amount of the supplementary old-age lifelong pension is determined by:
** the funds accumulated in the insured person’s individual account after top-up and as needed
** a mortality and life expectancy table published by the National Institute of Statistics
** a technical interest rate approved by the Financial Supervision Commission.
Fees and Deductions
In the management of the universal pension fund, the fees and deductions in favour of DallBogg: Life and Health are as follows:
** a deduction of 3.75 per cent from each contribution as it is received into the universal pension fund
** an investment fee calculated on the value of the net assets of the Universal Pension Fund, depending on the period during which they have been managed by the pension insurance company, at the rate of 0.75 per cent per annum
** a fee of BGN 10 for the transfer of the funds in the individual account from DallBogg: Life and Health UPF to the pension schemes of the European Union, the European Central Bank and the European Investment Bank, pursuant to Article 343a(1)(2) and Article 343f of the SIC.