Regulatory Alerts2021-06-10
Order No. 68 of 10.06.2021 on the Reserves of Pension and Insurance Companies for Guaranteeing the Gross Amount of Contributions to Universal Pension Funds
The Financial Supervision Commission issued Order No. 68 of 10.06.2021 to mandate that pension and insurance companies managing universal pension funds establish, calculate, and maintain dedicated reserves guaranteeing the gross amount of member contributions. The regulation requires initial reserve sizing based on net asset values, followed by monthly recalculations set at 0.5 percent of net assets, with mandatory own-fund top-ups or releases whenever asset coverage falls below or exceeds the statutory threshold. Concurrently, the Order amends Order No. 12 of 2003 to harmonize reserve requirements for supplementary mandatory pension funds and updates all associated reporting templates to the euro upon Bulgaria's currency adoption.
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