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

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 Pub. - State Gazette, No. 52 of 22.06.2021; amended, No. 64 of 09.08.2022, effective from 09.08.2022; amended, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria Adopted by Decision No. 216-N of 10.06.2021 of the Financial Supervision Commission. Art. 1. This Order sets out the requirements for the formation, calculation, and maintenance of the reserves of pension and insurance companies for guaranteeing the gross amount of contributions to universal pension funds, the replenishment of the reserves to the required amount, and the release of funds from them. Art. 2. (1) Every pension and insurance company managing a universal pension fund shall create, using its own funds, a reserve for guaranteeing the gross amount of contributions to it (reserve for guaranteeing gross contributions) by the end of the month in which the first contribution to the fund was received. The amount of the reserve upon its creation shall be determined based on the value of the net assets of the universal pension fund as of the last working day of the month in which the first contribution was received. (2) The allocation of funds to cover the reserve shall be carried out on the day of its creation. Art. 3. (1) The pension and insurance company shall recalculate the reserve for guaranteeing gross contributions by the end of each month. The reserve shall amount to 0.5 percent of the value of the net assets of the universal pension fund, calculated as of the end of the last working day of the respective month. (2) When, upon recalculation of the reserve, the value of the assets covering it is lower than the required amount under para. 1, the company shall replenish these assets with its own funds. (3) When, upon recalculation of the reserve, the value of the assets covering it is higher than the required amount under para. 1, the company shall release the excess from these assets. (4) The replenishment and release of funds under paras. 2 and 3 shall be carried out by the end of the month to which the recalculation relates. Art. 4. (1) The pension and insurance company shall account for the reserve for guaranteeing gross contributions through a separate accounting account. (2) The assets covering the reserve shall be accounted for through separate accounting accounts or through separate sub-accounts to the respective accounting account. Art. 5. The pension and insurance company shall submit to the Financial Supervision Commission, by the 20th day of the month following the reporting month, a report on the reserve for guaranteeing gross contributions and attachments thereto according to the form set out in Appendices No. 1 to 5. Final Provisions § 1. The following amendments and supplements are made to Order No. 12 of 10.12.2003 on the method and procedure for determining the minimum yield in the management of assets of funds for supplementary mandatory pension insurance, for covering the difference to the minimum yield, and for the formation and use of reserves for guaranteeing the minimum yield (Pub., State Gazette, No. 110 of 2003; corrig., No. 1 of 2004; amended and supplemented, No. 17 of 2004, No. 29 of 2005, No. 57 of 2007, and No. 50 of 2018):

1. In Art. 6, after the word "submit", the words "to the Financial Supervision Commission" are added, and the words "according to the form approved by the Deputy Chairman of the Financial Supervision Commission heading the 'Insurance Supervision' Department" are replaced with "according to the form set out in Appendix No. 3".
2. In Art. 7: a) para. 1 is created: "(1) Every pension and insurance company managing a fund for supplementary mandatory pension insurance shall create, using its own funds, a reserve under Art. 193, para. 8 of the Social Security Code by the end of the month in which the first contribution to the fund was received. The amount of the reserve upon its creation shall be determined based on the value of the net assets of the fund as of the end of the last working day of the month in which the first contribution was received."; b) the existing text becomes para. 2, and after the words "by the end", the words "of the last working day" are added.
3. Art. 7a is created: "Art. 7a. (1) When the value of the assets covering the reserve of the pension and insurance company is lower than 1.5 percent of the net assets of the respective fund for supplementary mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Security Code, after recalculating the amount of its reserve as of the previous working day, the pension and insurance company may take a decision to replenish it with its own funds. The decision shall specify the exact amount of the funds with which the assets covering the reserve are replenished. (2) The replenishment shall be carried out as of the day to which the recalculation under para. 1 relates."
4. Art. 8 is amended as follows: "Art. 8. (1) The pension and insurance company shall account for the reserve for the respective fund for supplementary mandatory pension insurance through a separate accounting account. (2) The assets covering the reserve shall be accounted for through separate accounting accounts or through separate sub-accounts to the respective accounting account."
5. Art. 9 is amended as follows: "Art. 9. The pension and insurance companies shall submit to the Financial Supervision Commission a report on the formation of a reserve for guaranteeing the minimum yield from own funds and attachments thereto according to the form set out in Appendices No. 4 to 8 by the 20th day of the month following the reporting month."
6. Art. 15 is amended as follows: "Art. 15. When funds from the reserve under Art. 193, para. 7 of the Social Security Code have been used to cover the difference to the minimum yield, the pension and insurance company shall submit to the Financial Supervision Commission a report according to the form set out in Appendix No. 9 by the end of the working day on which the difference to the minimum yield was covered."
7. Art. 15a is amended as follows: "Art. 15a. (1) When the value of the assets covering the reserve of the pension and insurance company exceeds 0.5 percent of the value of the net assets of the respective fund for supplementary mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Security Code, after recalculating the amount of its reserve as of the previous working day, the pension and insurance company may take a decision to release funds from it. The decision shall specify the exact amount of the funds to be released from the company's reserve. (2) The release of funds from the reserve shall be carried out as of the day to which the recalculation under para. 1 relates. (3) When, upon recalculation of the reserve under the procedure of Art. 193, para. 8 of the Social Security Code, the value of the assets covering it exceeds 1.5 percent of the net assets of the respective fund for supplementary mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Security Code, the pension and insurance company shall release the excess from its reserve to bring its amount into compliance with this limit. (4) The release of funds from the reserve under para. 3 shall be carried out by the end of the month to which the recalculation under Art. 193, para. 8 of the Social Security Code relates."
8. Sections 1 to 3 of the Transitional and Final Provisions are repealed.
9. Appendix No. 3 to § 1 and 3 is repealed.
10. A new Appendix No. 3 to Art. 6 is created: "Appendix No. 3 to Art. 6"
11. Appendix No. 4 to Art. 9 is created: "Appendix No. 4 to Art. 9"
12. Appendix No. 5 to Art. 9 is created: "Appendix No. 5 to Art. 9"
13. Appendix No. 6 to Art. 9 is created: "Appendix No. 6 to Art. 9"
14. Appendix No. 7 to Art. 9 is created: "Appendix No. 7 to Art. 9"
15. Appendix No. 8 to Art. 9 is created: "Appendix No. 8 to Art. 9"
16. Appendix No. 9 to Art. 15 is created: "Appendix No. 9 to Art. 15" § 2. Section 1, items 1, 5, 6, and 8 to 16 shall enter into force on 01.09.2021. § 3. This Order is issued pursuant to Art. 193a, para. 9 of the Social Security Code and was adopted by Decision No. 216-N of 10.06.2021 of the Financial Supervision Commission. Chairman: Boyko Atanasov Appendix No. 1 to Art. 5 (Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria) Appendix No. 2 to Art. 5 (Amended - State Gazette, No. 64 of 2022, effective from 09.08.2022; amended, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria) Appendix No. 3 to Art. 5 (Amended - State Gazette, No. 64 of 2022, effective from 09.08.2022; amended, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria) Appendix No. 4 to Art. 5 (Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria) Appendix No. 5 to Art. 5 (Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of the introduction of the euro in the Republic of Bulgaria) Transitional and Final Provisions to the Order amending Order No. 63 of 8 November 2018 on the requirements for the content, periodicity of preparation, and deadlines for submission of supervisory reports of pension and insurance companies and the funds managed by them (State Gazette, No. 64 of 09.08.2022, effective from 09.08.2022) § 20. The following amendments are made to 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 (State Gazette, No. 52 of 2021):
17. Appendix No. 2 to Art. 5 is amended as follows: "Appendix No. 2 to Art. 5"
18. Appendix No. 3 to Art. 5 is amended as follows: "Appendix No. 3 to Art. 5" Provisions to the Order amending and supplementing Orders of the Financial Supervision Commission (State Gazette, No. 65 of 08.08.2025, effective from 08.08.2025) § 10. In Order No. 68 of 10 June 2021 on the reserves of pension and insurance companies for guaranteeing the gross amount of contributions to universal pension funds (Pub., State Gazette, No. 52 of 2021; amended, No. 64 of 2022), in the appendices, the word "lev" is everywhere replaced with "euro". § 11. All reports approved by the Order under § 10 that relate to a date preceding the date of the introduction of the euro in the Republic of Bulgaria shall be prepared according to the previous procedure.