European Retirement RenaissanceEuropean Retirement RenaissanceBASPSC and the responses of the Bulgarian pension systemBASPSC and the responses of the Bulgarian pension system

Dr. Nickolai Slavchev (BASPSC)Chief Retirement Schemes AnalystPOD “Allianz Bulgaria” AD

?? AA C C C E S S I O NC E S S I O N

accidentalaccidental

acceptableacceptable

acclamatoryacclamatory

accurateaccurate

accountableaccountable

accursedaccursed

TWELVETWELVE CENTURIESCENTURIES

AGOAGO

BEBEFOREWORDFOREWORD

Pension architecture in BulgariaPension architecture in Bulgaria

Challenges in the accession to the EU single pension market Challenges in the accession to the EU single pension market Applicable EU legislationApplicable EU legislationScheme DesignScheme Design

Stages of accession to the EU single pension marketStages of accession to the EU single pension market

(the lessons learned (the lessons learned alalmost)most)

BASPSCBASPSC in the European pension debatein the European pension debatePensionsEurope (EFRP), Sofia Ad Hoc Group, ECPensionsEurope (EFRP), Sofia Ad Hoc Group, EC, , EIOPAEIOPA

Agenda

Pension architecture in BulgariaPension architecture in BulgariaPension Sustainability IndexPension Sustainability Index

II IIIIIIIIII

PPFUPF VPF“Pension” Fund NSSI

VPF OS

Net assets (II + III)Net assets (II + III)::

BGN BGN 5.4 5.4 billionbillion (2012) (2012)

Members (II + III)Members (II + III)::

4 4 millionmillion

DataData:: FSCFSC, , 20122012

Applicable EU legislationApplicable EU legislationWhich pillar is which?Which pillar is which?

Scheme designScheme designThe industrial nostalgia of Western EuropeThe industrial nostalgia of Western Europe

ChallengesChallenges

Applicable legislationApplicable legislation

RegulationRegulation 883/2004 (883/2004 (1408/711408/71))

DirectiveDirective 2003/41 ( 2003/41 (IORPIORP Directive)Directive)““A wrong Directive at the wrong time.A wrong Directive at the wrong time...” 1 ..” 1 MarchMarch 2012, 2012, BrusselsBrussels

Readjust/Read just…Readjust/Read just…

Ring-fencing/Ring-fancyingRing-fencing/Ring-fancying

Company basedCompany based / With independent personal / With independent personal accountsaccounts““Win-win” solutionWin-win” solution

DB/DCDB/DCTired of opportunities and wooed with promisesTired of opportunities and wooed with promises

Vesting & PortabilityVesting & Portability““Gold-plated cagesGold-plated cages””

Scheme designScheme design

Idol materialisationIdol materialisationwhen idols stop being idolswhen idols stop being idols

Pre-accession jealousyPre-accession jealousyfaster than the other member candidatesfaster than the other member candidates

EU retirement provision romanticismEU retirement provision romanticismflight from realityflight from reality

Stages of accession to the EU Stages of accession to the EU single pension marketsingle pension market

the lessons learned almost

The lesson for Bulgaria: Complying with EU requirements is not the aim but the means for achieving the aim.

The lesson for the EU: Unity in diversity, not in uniformity.

Idol materialisationIdol materialisation

The lesson for Bulgaria: Hasty voting lead to legal texts which need refining.

The lesson for the EU: Fostering pre-accession jealousy slows down the transfer of good practice.

Pre-accession jealousyPre-accession jealousy

The lesson for Bulgaria: There is no absolute ideal practice of supplementary retirement provision in Old Europe.

The lesson for the EU: New member states are part of the solution, not of the problems on the Old Continent.

EU retirement provision romanticismEU retirement provision romanticism

BASPSC in the European pension debateBASPSC in the European pension debateGreen and White Paper on pensionsGreen and White Paper on pensions

PensionsEurope (EFRP)PensionsEurope (EFRP)occupationaloccupational...... workplace workplace...... work-related… work-related…

Sofia Ad Hoc GroupSofia Ad Hoc GroupThe East European School of Thought in The East European School of Thought in supplementary retirement provisionsupplementary retirement provision

ECEC andand EIOPAEIOPAconsultationsconsultations, , opinionsopinions, , meetingsmeetings

The sacred dogmas and the solidarity reign

Renaissance rudiments

European retirement renaissanceEuropean retirement renaissancecatching upcatching up

Solid solidarity

In the same direction or...catching up with others

European retirement renaissanceEuropean retirement renaissance catching upcatching up

… … EAST OF EDENEAST OF EDEN