The Financial Supervision Commission adopted at the second vote an Ordinance on the reserves of pension insurance companies to guarantee the gross amount of contributions to universal pension funds.

The Act to Amend and Supplement the Social Insurance Code (promulgated SG No. 19/2021), which introduces the regulation on the payment of pensions from universal pension funds, provides a mechanism for guaranteeing the gross insurance contributions of the persons insured in these funds. In particular, before the payment of a pension or a one-off or deferred payment in case of acquired pension rights from a universal pension fund, the individual account of the insured person is supplemented by the gross amount of insurance contributions reported by the National Revenue Agency and the National Social Security Institute. In order to implement the guarantee mechanism provided by law, the legislator delegated to the Financial Supervision Commission to determine by ordinance the requirements for the formation, calculation and maintenance of reserves of pension insurance companies to guarantee gross contributions, replenishment of reserves to the required amount and release of funds from them.

In this regard, the ordinance regulates the procedure for each pension insurance company establishing a reserve for guaranteeing gross contributions, requiring this to be done by the end of the month in which the first contribution to the universal pension fund was received, according to the latest information at that time (the fund’s net asset value on the last business day of the specified month). The allocation of funds to cover the reserve is made on the day of its creation. Similarly, the current recalculation of the reserve, its replenishment and release of funds from it are carried out at the end of the month for which the recalculation is made, based on the net asset value of the universal pension fund on the last working day of this month. The procedure for formation and recalculation of the reserve for guaranteeing the gross contributions regulated in the draft ensures its current adjustment in accordance with the legal requirements and parameters.

The Ordinance also amends Ordinance No. 12 of 10 December 2003 on the manner and procedure for determining the minimum return on asset management of supplementary mandatory pension insurance funds, to cover the difference to the minimum return and for the formation and use of the reserves for guaranteeing the minimum return, which are aimed at harmonizing and synchronizing with the regulation of the reserve for guaranteeing gross contributions and the amendments to the Social Insurance Code.