PensionsEurope has claimed that a Better Finance report on Bulgarian pension funds was based on incorrect data that led to wrong conclusions and “dangerous” policy recommendations.

After analysing the report with its Bulgarian member association, Bulgarian Association of Supplementary Pension Security Companies, PensionEurope said the report was wrong in declaring that Bulgarian private pensions had failed.

The report calls for the reversing of state pension fund contributions in the future and for a transfer of the existing pension savings to the government fund.

It also recommended reversing the private pension reform of 2000, which would mean nationalising individual pension savings in Bulgaria, according to PensionsEurope.

PensionsEurope warned that these recommendations would be detrimental to Bulgarian pensions.

In 2021, Bulgaria is entering the pay-out-phase from private pensions and PensionsEurope described policy recommendation to dismantle the existing system as “harmful”.

“The country profile of Bulgaria contains several incorrect numbers and calculations – most importantly an incorrect rate of returns for the Bulgarian pension funds,” commented PensionsEurope CEO and secretary general, Matti Leppälä.

“The Better Finance report also includes wrong information on Bulgaria in general. For instance, the report incorrectly states that ‘in Bulgaria, data for Professional Pension Funds (pillar II and III) is no longer available since 2018’, while the Bulgarian Local Regulator i.e. Financial Supervision Commission provides on a quarterly basis full disclosure on pension market development by type of funds and players with the same quality and quantity of information.

“Based on incorrect information, Better Finance’s recommendation to reverse private pension contributions and transfer savings to the government is dangerous.”

PensionsEurope noted that it welcomes research on the quality of pensions and member outcomes, and is willing to co-operate with Better Finance to “improve the methodology and quality of its reports”.

Better Finance has been contacted by European Pensions for comment.

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