What is retirement provision?

In 2000, a pension reform was implemented in Bulgaria, defining three pillars of pension provision: State social security, Supplementary mandatory pension insurance and Supplementary voluntary pension insurance. The first pillar is managed by the National Social Security Institute (NSSI) and the other two are managed primarily by licensed private pension companies. The supplementary mandatory pension insurance applies to all insured persons born after 31.12.1959, providing them with the opportunity to receive a second supplementary pension.

Why trust us?

We will help you make an informed choice about which retirement company to approach by providing you with information about required fees, profitability and at what risk levels it was achieved. This way you will be certain that the funds you have accumulated will be managed in a responsible and professional manner.

Types of pension funds

  • Universal Pension Fund (UPF) - mandatory for workers in the third category of labour. The contribution is divided between employer and employee. Through this fund, the insured persons receive a lifetime old-age pension;
  • Professional Pension Fund (PPF) - workers in the first and second category of labour must be insured in the PPF. The contribution is paid by the employer. This way workers receive an additional early retirement pension at a fixed date;
  • Voluntary Pension Fund (VPF) - depositing funds into this fund is optional and at the discretion of the insured person, and can be viewed as a form of voluntary long-term savings. The size of the contributions and the period of their payment are also an individual decision.  This type of insurance can be provided individually or by an employer as a social benefit to employees.

Choosing a pension company and transferring

When you first start work, you have the right to choose the pension company in which to be insured for a second pension. If you do not do so within three months, you will be ex officio allocated to one of the registered pension funds in a manner determined by an instruction, jointly issued by the Financial Supervision Commission and the National Revenue Agency.

The accumulated funds in the individual account can be transferred to another company chosen by you, free of charge once a year. For this purpose, an application must be completed, which must be notarised (the certification is at the expense of the insured person).

Each insured person has the right to participate in only one universal/professional fund.


Contributions for the mandatory supplementary insurance are transferred together with those for the state social insurance. The UPF amount is 5% of the insurable earnings (2.2% at the expense of the employee and 2.8% at the expense of the employer). The amount of the contribution for the UPF of the workers of the first category of labour is 12%, and for those of the second one - 7% of the insurable earnings. These contributions are entirely at the expense of the employer.