Ordinance No. 60 of 02.05.2018 on Requirements for Documents under Art. 122a, Para. 1, Items 6 and 11, Art. 145, Para. 1, Items 4, 8, 9 and 11, and Art. 218, Para. 2, Items 3, 7, 8 and 11 of the Social Insurance Code for Issuing a Pension License and Authorization for Managing a Pension Fund

(Title amended - State Gazette, No. 60 of 2021) Pub. - State Gazette, No. 39 of 11.05.2018, effective from 19.11.2018; amended and supplemented, No. 60 of 20.07.2021; amended and supplemented, No. 70 of 20.08.2024. Adopted by Decision No. 468-N of 02.05.2018 of the Commission for Financial Supervision

Art. 1. (Amended - State Gazette, No. 60 of 2021) This Ordinance determines the requirements for:

1. the business plan for the activities of a pension insurance company under Art. 122a, Para. 1, Item 6 of the Social Insurance Code (SIC);
2. the data on the information system of a pension insurance company under Art. 122a, Para. 1, Item 11 of the SIC;
3. (Amended - State Gazette, No. 60 of 2021) the actuarial calculations for the pension schemes offered by a fund for supplementary pension insurance under Art. 145, Para. 1, Item 4 and Art. 218, Para. 2, Item 3 of the SIC;
4. (Amended - State Gazette, No. 60 of 2021) the documents for the information system under Art. 145, Para. 1, Item 8 and Art. 218, Para. 2, Item 7 of the SIC;
5. (Amended - State Gazette, No. 60 of 2021) the report on staffing of a pension insurance company under Art. 145, Para. 1, Item 9 and Art. 218, Para. 2, Item 8 of the SIC;
6. (Amended - State Gazette, No. 60 of 2021) the rules for the procedures for monitoring, measuring, and managing the risk associated with the investments of the funds managed by the pension insurance company under Art. 145, Para. 1, Item 11 and Art. 218, Para. 2, Item 11 of the SIC.

Art. 2. (Amended and supplemented - State Gazette, No. 60 of 2021; amended, No. 70 of 2024) The business plan for the activities of a pension insurance company is prepared for a three-year period and contains information regarding:

1. the company (name and general presentation);
2. the main objectives of the company;
3. (Supplemented - State Gazette, No. 60 of 2021) the funds for supplementary pension insurance and the payment funds that the company intends to establish;
4. the market share that the company intends to cover with its services;
5. the offered pension schemes and products;
6. (Amended - State Gazette, No. 70 of 2024) the company's strategy for attracting customers;
7. the necessary financial, technical, and other resources, as well as the company's ability to secure these resources;
8. the staffing of activities for supplementary pension insurance;
9. the investment policy of the company;
10. the risks associated with the company's activities;
11. (Amended - State Gazette, No. 60 of 2021) forecast data for a three-year period for the company's revenues and expenses, for the number of persons in each of the funds intended for establishment, and for the size of their net assets.

Art. 3. (1) The data on the information system of the pension insurance company under Art. 1, Item 2 are presented in the form of a specification for the development of an information system, a project for the development of an information system, a contract for the development of an information system with a detailed description of the subject of activity, or a description of a ready-made information system. (2) The specification, project, contract, or description must comply with Ordinance No. 47 of 2012 on the Requirements for Information Systems of Pension Insurance Companies (State Gazette, No. 57 of 2012) (Ordinance No. 47 of 2012).

Art. 4. (Amended and supplemented - State Gazette, No. 60 of 2021; supplemented, No. 70 of 2024) (1) (New - State Gazette, No. 60 of 2021) The actuarial calculations under Art. 145, Para. 1, Item 4 of the SIC contain:

1. a description of the offered pension schemes, including:
   a) the types of pensions and other payments from the respective pension scheme; b) the conditions for acquiring the right to a pension and other payments from the respective pension scheme; c) the procedure and method for calculating the size of pensions and other payments under the respective pension scheme; d) the procedure and method for updating and recalculating pensions and other payments under the respective pension scheme;
2. a description of the accounting bases used in the actuarial calculations, which includes:
   a) the mortality table applied for determining the size of life annuities; b) the technical interest rate used in the actuarial calculations, with justification for its determination;
3. the expected size and structure (gender, age, insurance contributions according to the size under Art. 157, Para. 1 of the SIC) of the fund for supplementary pension insurance for a period of three years and factors affecting its financial status:
   a) forecasts for future insurance contributions and payments into the fund depending on the number and structure of insured persons and pensioners; b) an assessment of future liabilities; c) a risk analysis under various changes in economic and demographic factors;
4. the procedure and method for determining the size of the minimum liquid assets of the fund for supplementary pension insurance.
   (2) (Previous text of Art. 4, Para. 1, amended and supplemented - State Gazette, No. 60 of 2021; supplemented, No. 70 of 2024) The actuarial calculations under Art. 218, Para. 2, Item 3 of the SIC contain:
5. a description of the offered pension schemes, including:
   a) the types of pensions and other payments from the respective pension scheme; b) the conditions for acquiring the right to a pension and other payments from the respective pension scheme; c) the procedure and method for calculating the size of pensions and other payments under the respective pension scheme; d) (New - State Gazette, No. 60 of 2021) the procedure and method for updating and recalculating pensions and other payments under the respective pension scheme; e) (New - State Gazette, No. 70 of 2024) all essential conditions from the agreement under Art. 246a, Para. 1 of the SIC, including the funds due to the insurer from the voluntary pension fund for PEPP, the risks covered by the insurer, and the payments due by it to the fund, the beneficiaries of PEPP and their heirs.
6. a description of the accounting bases used in the actuarial calculations, which includes:
   a) (Supplemented - State Gazette, No. 70 of 2024) a description of the biometric mortality tables applied for determining the size of life annuities for old age from a fund for supplementary voluntary pension insurance, including:
   aa) a description of the population group on the basis of which the tables were developed (data from national-level observations, industry-level observations, own observations); bb) the tools used for their development; cc) justification for their selection and suitability for actuarial calculations, and in case of using tables developed by other institutions, their name and justification for the appropriateness of their application; b) (Supplemented - State Gazette, No. 70 of 2024) a description in accordance with the requirements of letter "a" of the biometric mortality tables applied for determining the size of life annuities for disability from a fund for supplementary voluntary pension insurance, in cases where such pensions are provided for payment according to the regulations of the respective fund and the provisions of the SIC; c) the technical interest rate used in the actuarial calculations, with justification for its determination;
7. (Supplemented - State Gazette, No. 70 of 2024) the expected size and structure (gender, age, insurance contributions according to the insurer and periodicity) of the fund for supplementary pension insurance for a period of three years and of each sub-fund under Art. 214a of the SIC and factors affecting its financial status:
   a) (Amended - State Gazette, No. 70 of 2024) forecasts for future insurance contributions and payments into the fund depending on the number and structure of insured persons, persons insured under PEPP, pensioners, and beneficiaries of PEPP; b) an assessment of future liabilities; c) a risk analysis under various changes in economic and demographic factors;
8. (Supplemented - State Gazette, No. 70 of 2024) the procedure and method for determining the size of the minimum liquid assets of the fund for supplementary pension insurance, respectively of each sub-fund under Art. 214a of the SIC.
   (2) (Amended - State Gazette, No. 70 of 2024) The biometric mortality tables under Para. 1, Item 2, letter "a" and Para. 2, Item 2, letters "a" and "b" are presented in separate appendices to the actuarial calculations separately for each fund from which the respective type of pension is paid, and are developed by single ages, containing:
9. age in completed years;
10. number of survivors, number of deaths, survival probability rates, mortality probability rates;
11. average remaining life expectancy;
12. discounted and commutation numbers.
    [Note: The last paragraph of Art. 4 with the current numbering two remains unaffected by the amendments introduced with State Gazette, No. 60 of 20.07.2021 with § 9 of the Transitional and Final Provisions of Ordinance No. 70 of 29.06.2021 on the Requirements for Payment Funds]

Art. 5. The documents under Art. 1, Item 4 contain a description of:

1. the installed hardware equipment - server systems, workstations, structured cabling, other technical means, such as fire detection systems, security systems, power supply, climate installations, uninterruptible power supplies;
2. the available system and application software;
3. the main functionalities of the information system and the electronic services provided by it;
4. the software, hardware, and other technical solutions used, including those listed in items 1 and 2, to ensure compliance with the requirements of the standard under Art. 3, Para. 1 of Ordinance No. 47 of 2012;
5. the official email address for contacts and the IP address of the server through which the exchange of official correspondence of the pension insurance company is carried out;
6. the website of the pension insurance company and its compliance with the requirements of Art. 12 of Ordinance No. 47 of 2012;
7. other planned actions for the development of the information system and ensuring information security.

Art. 6. The report on staffing of a pension insurance company contains information regarding:

1. the management system;
2. the established structural units, including territorial offices;
3. the number of personnel, positions, and qualifications according to the staff establishment schedule.

Art. 7. (Supplemented - State Gazette, No. 60 of 2021) The rules for the procedures for monitoring, measuring, and managing the risk associated with the investments of a fund for supplementary pension insurance and a payment fund contain:

1. the identified investment risks;
2. the methods for measuring the identified risks, including models for quantitative measurement of at least interest rate risk, currency risk, price risk, credit risk, liquidity risk, concentration risk, and risk in hedging transactions;
3. the threshold values of the monitored and measured risks;
4. the set of data for monitoring the risks under item 1 and the application of the methods under item 2 and the periodicity of providing information about them to the risk management unit;
5. the procedures for identifying, measuring, analyzing, and managing risks, including:
   a) the actions provided for avoiding mechanical reliance on credit ratings; b) the actions taken when threshold values under item 3 are exceeded or when excessive risk exposure is established; c) the use of transactions under Art. 179b, Para. 1 of the SIC (hedging transactions), including:
   aa) objectives of use and level of hedging of investment risks; bb) the risks to be hedged and the risks associated with hedging transactions; cc) the types of transactions and the underlying assets of hedging instruments; dd) the methodology used for measuring the risk associated with hedging instruments; ee) the maximum size of risk exposure; ff) the methods used for assessing the effectiveness of hedging and the sources of information for this assessment; gg) the periodicity of preparing analyses of the impact of hedging transactions on the risk profile of the fund's portfolio;
6. the units or persons responsible for implementing the provided procedures and exercising control;
7. a system for documenting the followed procedures.

Final Provisions

§ 1. This Ordinance is issued on the basis of Art. 122a, Para. 5, Art. 145, Para. 4, and Art. 218, Para. 5 of the SIC and was adopted by Decision No. 468-N of 2 May 2018 of the Commission for Financial Supervision.

§ 2. This Ordinance enters into force from 19.11.2018.

Chairperson: Karina Karaivanova

Transitional and Final Provisions to ORDINANCE No. 70 of 29.06.2021 on Requirements for Payment Funds (State Gazette, No. 60 of 20.07.2021)

§ 9. In Ordinance No. 60 of 2.05.2018 on Requirements for Documents under Art. 122a, Para. 1, Items 6 and 11, Art. 145, Para. 1, Items 3, 7, 8 and 10, and Art. 218, Para. 2, Items 3, 7, 8 and 11 of the Social Insurance Code for Issuing a Pension License and Authorization for Managing a Pension Fund (State Gazette, No. 39 of 2018), the following changes and supplements are made:

1. In the title of the Ordinance, the words "Art. 145, Para. 1, Items 3, 7, 8 and 10" are replaced with "Art. 145, Para. 1, Items 4, 8, 9 and 11".
2. In Art. 1:
   a) in item 3, the words "Art. 145, Para. 1, Item 3" are replaced with "Art. 145, Para. 1, Item 4"; b) in item 4, the words "Art. 145, Para. 1, Item 7" are replaced with "Art. 145, Para. 1, Item 8"; c) in item 5, the words "Art. 145, Para. 1, Item 8" are replaced with "Art. 145, Para. 1, Item 9"; d) in item 6, the words "fund for supplementary pension insurance" are replaced with "funds managed by the pension insurance company", and the words "Art. 145, Para. 1, Item 10" are replaced with "Art. 145, Para. 1, Item 11".
3. In Art. 2:
   a) after the word "funds", the words "for supplementary pension insurance and payment funds" are added; b) item 11 is amended as follows:
   "11. forecast data for a three-year period for the company's revenues and expenses, for the number of persons in each of the funds intended for establishment, and for the size of their net assets."
4. In Art. 4:
   a) Para. 1 is created:
   "(1) The actuarial calculations under Art. 145, Para. 1, Item 4 of the SIC contain:
   1. a description of the offered pension schemes, including:
      a) the types of pensions and other payments from the respective pension scheme; b) the conditions for acquiring the right to a pension and other payments from the respective pension scheme; c) the procedure and method for calculating the size of pensions and other payments under the respective pension scheme; d) the procedure and method for updating and recalculating pensions and other payments under the respective pension scheme;
   2. a description of the accounting bases used in the actuarial calculations, which includes:
      a) the mortality table applied for determining the size of life annuities; b) the technical interest rate used in the actuarial calculations, with justification for its determination;
   3. the expected size and structure (gender, age, insurance contributions according to the size under Art. 157, Para. 1 of the SIC) of the fund for supplementary pension insurance for a period of three years and factors affecting its financial status:
      a) forecasts for future insurance contributions and payments into the fund depending on the number and structure of insured persons and pensioners; b) an assessment of future liabilities; c) a risk analysis under various changes in economic and demographic factors;
   4. the procedure and method for determining the size of the minimum liquid assets of the fund for supplementary pension insurance.";
      b) the current text of Art. 4 becomes Para. 2 and the following changes and supplements are made in it:
      aa) in the main text, the words "Art. 1, Item 3" are replaced with "Art. 218, Para. 2 of the SIC"; bb) letter "g" is created:
      "g) the procedure and method for updating and recalculating pensions and other payments under the respective pension scheme;".
5. In Art. 7, after the words "fund for supplementary pension insurance", the words "and a payment fund" are added.

Transitional and Final Provisions to the Ordinance on Amendment and Supplement to Ordinance No. 63 of 8.11.2018 on Requirements for the Content, Periodicity of Preparation, and Deadlines for Submission of Supervisory Reports of Pension Insurance Companies and Funds Managed by Them (State Gazette, No. 70 of 20.08.2024)

§ 23. In Ordinance No. 60 of 2.05.2018 on Requirements for Documents under Art. 122a, Para. 1, Items 6 and 11, Art. 145, Para. 1, Items 4, 8, 9 and 11, and Art. 218, Para. 2, Items 3, 7, 8 and 11 of the Social Insurance Code for Issuing a Pension License and Authorization for Managing a Pension Fund (Pub., State Gazette, No. 39 of 2018; amended and supplemented, No. 60 of 2021), the following changes and supplements are made:

1. In Art. 2, item 6, the words "insured persons" are replaced with "customers".
2. In Art. 4, Para. 2:
   a) in the text before item 1, after the words "Art. 218, Para. 2", a comma is placed and "Item 3" is added; b) in item 1, letter "d" is created:
   "d) all essential conditions from the agreement under Art. 246a, Para. 1 of the SIC, including the funds due to the insurer from the voluntary pension fund for PEPP, the risks covered by the insurer, and the payments due by it to the fund, the beneficiaries of PEPP and their heirs."; c) in item 2:
   aa) in letter "a", after the word "pensions", the words "for old age from a fund for supplementary voluntary pension insurance" are added; bb) in letter "b", after the word "disability", the words "from a fund for supplementary voluntary pension insurance" are added; d) in item 3:
   aa) in the text before item 1, after the words "three years", the words "and of each sub-fund under Art. 214a of the SIC" are added; bb) in letter "a", the words "insured persons and pensioners" are replaced with "insured persons, persons insured under PEPP, pensioners, and beneficiaries of PEPP"; e) in item 4, a comma is placed at the end and the words "respectively of each sub-fund under Art. 214a of the SIC" are added; f) in Para. 3, the words "Para. 1, Item 2, letters 'a' and 'b'" are replaced with "Para. 1, Item 2, letter 'a' and Para. 2, Item 2, letters 'a' and 'b'".