Ordinance No. 1 of 23.06.2026 on the Reserves for Guaranteeing the Gross Amount of Contributions to Supplementary Mandatory Pension Insurance Funds and the Reserves for Guaranteeing Pension Payments

ORDINANCE No. 1 of 23.06.2026 on the reserves for guaranteeing the gross amount of contributions to supplementary mandatory pension insurance funds and the reserves for guaranteeing pension payments Promulgated - SG, issue 61 of 03.07.2026, effective from 01.01.2027.
Adopted by Decision No. 282-H of 23.06.2026 of the Financial Supervision Commission

Section I
General Provisions

Art. 1. This ordinance defines the requirements for:

1. the formation, calculation, and maintenance by pension insurance companies of:
   a) reserves for guaranteeing the gross amount of contributions to universal pension funds; b) reserves for guaranteeing the gross amount of contributions to professional pension funds; c) reserves for guaranteeing pension payments.
2. supplementing the reserves under item 1 up to the required amount and releasing funds from them.

Section II
Reserves for Guaranteeing the Gross Amount of Contributions to Supplementary Mandatory Pension Insurance Funds

Art. 2. (1) Each pension insurance company managing a universal pension fund shall create, with its own funds, a reserve for guaranteeing the gross amount of contributions to it as of the end of the month in which the first contribution to the fund was received. The amount of the reserve at its creation is 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) Each pension insurance company managing a professional pension fund shall create, with its own funds, a reserve for guaranteeing the gross amount of contributions to it as of the end of the month in which the first contribution to the fund was received. The amount of the reserve at its creation is determined based on the value of the net assets of the professional pension fund as of the last working day of the month in which the first contribution was received. (3) The allocation of funds to cover the reserves under paragraphs 1 and 2 shall be carried out on the day of the creation of the respective reserve.

Art. 3. (1) The pension insurance company shall recalculate the reserves under Art. 2, paragraphs 1 and 2 as of the end of each month. Each reserve shall be in the amount of 1 to 1.5 percent of the value of the net assets of the respective supplementary mandatory pension insurance fund, calculated as of the end of the last working day of the respective month. (2) When, upon recalculation of the reserve under Art. 2, paragraph 1 or 2, its value is lower than the minimum amount under paragraph 1, the company shall supplement the respective reserve with its own funds to bring its value in line with the minimum amount. (3) When, upon recalculation of the reserve under Art. 2, paragraph 1 or 2, its value is higher than the maximum amount under paragraph 1, the company shall release the excess from the respective reserve to bring its value in line with the maximum amount. (4) When the value of the reserve under Art. 2, paragraph 1 or 2 is higher than the minimum amount under paragraph 1 and lower than the maximum amount under paragraph 1, the pension insurance company may decide to release funds from the reserve under Art. 2, paragraph 1 or 2 or to supplement it. The amount of the reserve shall be recalculated as of the working day preceding the decision to release funds or to supplement them. The decision shall specify the exact amount of funds to be released from the reserve, or respectively, the funds with which it is to be supplemented. (5) The supplementation and release of funds under paragraphs 2 - 4 shall be carried out as of the day to which the recalculation under paragraphs 2 - 4 refers.

Art. 4. (1) The pension insurance company shall account for each reserve under Art. 2, paragraphs 1 and 2 through a separate accounting account.
(2) The assets covering the respective reserve shall be accounted for through separate accounting accounts or through separate sub-accounts to the respective accounting account.

Section III
Reserves for Guaranteeing Pension Payments

Art. 5. (1) Each pension insurance company managing a universal pension fund, professional pension fund and/or supplementary voluntary pension insurance fund shall create a reserve for guaranteeing pension payments from the beginning of the year following the year of concluding the first contract for payment of any of the following payments:

1. additional lifelong old-age pension;
2. term professional early retirement pension;
3. personal lifelong old-age pension under Art. 212, para. 1, item 1 of the Social Security Code (SSC);
4. lifelong survivor's pension under Art. 212, para. 1, item 2 of the SSC;
5. deferred payment under Art. 167a, para. 1 of the SSC;
6. deferred payment under Art. 248, para. 2 of the SSC in connection with participation in a supplementary voluntary pension insurance fund.
   (2) When the pension insurance company has not created a fund for paying lifelong pensions, it shall create a reserve for guaranteeing pension payments and transfer to it the funds under Art. 170, para. 9, item 1 or 3 or Art. 245, para. 3 of the SSC within one month from the date of establishing the conditions for their transfer.

Art. 6. (1) The pension insurance company shall account for the reserve for guaranteeing pension payments through a separate accounting account.
(2) The sources forming the reserve shall be accounted for through separate sub-accounts to the respective accounting account.
(3) The assets covering the reserve shall be accounted for through separate accounting accounts or through separate sub-accounts to the respective accounting account.

Art. 7. (1) The minimum amount of the reserve for guaranteeing pension payments is 4 percent of the capitalized value of the payments under Art. 5, para. 1, items 1 - 3, 5 and 6.
(2) The amount of the reserve may not exceed 6 percent of the capitalized value of the payments under Art. 5, para. 1, items 1 - 3, 5 and 6.

Art. 8. (1) The pension insurance company shall recalculate the amount of the reserve for guaranteeing pension payments as of December 31 each year.
(2) When the value of the reserve is less than the amount under Art. 7, para. 1, the pension insurance company shall supplement the deficit with funds under Art. 123ch, para. 2, item 1 and/or 2 of the SSC, and the reserve may be supplemented above the minimum amount under Art. 7, para. 1 up to the amount under Art. 7, para. 2. (3) When the value of the reserve exceeds the amount under Art. 7, para. 2, the funds above the maximum amount, originating from receipts under Art. 123ch, para. 2, item 2 of the SSC, shall be released from the reserve and reflected in the account of the pension insurance company. (4) When the value of the reserve exceeds the amount under Art. 7, para. 1 and is lower than the amount under Art. 7, para. 2, the pension insurance company may decide to release funds from it, originating from receipts under Art. 123ch, para. 2, item 2 of the SSC, and/or to supplement it with funds under Art. 123ch, para. 2, item 1 and/or 2 of the SSC. The decision shall specify the exact amount of funds to be released from the reserve, or respectively, the funds with which it is to be supplemented. (5) When, as of December 31 of the reporting year, there is a negative difference under Art. 6, para. 1 or Art. 11, para. 1 of Ordinance No. 70 of June 23, 2026, on the requirements for funds for making payments (SG, issue 61 of 2026), this difference shall increase the deficit under paragraph 2 and decrease the excesses under paragraphs 3 and 4 in the reserve for guaranteeing pension payments. (6) The supplementation and release of funds under paragraphs 2 - 4 shall be carried out as of the date of the recalculation under paragraph 1. (7) In cases where, as a result of receipts under Art. 170, para. 9, item 1 and/or 3 and/or Art. 245, para. 3, and/or under Art. 123ch, para. 2, item 1 of the SSC, the amount under Art. 7, para. 1 or 2 is exceeded, the difference shall not be released in favor of the pension insurance company, but shall remain in the reserve account.

Transitional and Final Provisions

§ 1. (1) Pension insurance companies, together with the annual financial statements for 2026, shall prepare and submit the statements under Art. 10, para. 1 and Art. 16 of Ordinance No. 19 of 8.12.2004 on pension reserves and reserves for guaranteeing the payment of lifelong pensions (SG, issue 110 of 2004) for 2026 according to the previous procedure. (2) As of January 1, 2027, pension insurance companies maintaining pension reserves under § 188, para. 3 of the transitional and final provisions of the Law on Amendment and Supplement to the Social Security Code (SG, issue 27 of 2026) in connection with Art. 2, para. 1 and Art. 4 - 9 of the ordinance under paragraph 1, shall submit information about them through the report forms approved by Ordinance No. 63 of 8.11.2018 on the requirements for the content, periodicity of preparation and deadlines for submission of reports for supervisory purposes of pension insurance companies and the funds managed by them (SG, issue 95 of 2018).

§ 2. Pension insurance companies managing universal pension funds shall prepare and submit the statements under Art. 5 of Ordinance No. 68 of 10.06.2021 on the reserves of pension insurance companies for guaranteeing the gross amount of contributions to universal pension funds (SG, issue 52 of 2021) for December 2026 according to the previous procedure.

§ 3. Ordinance No. 19 of 8.12.2004 on pension reserves and reserves for guaranteeing the payment of lifelong pensions (promulgated, SG, issue 110 of 2004; amended, issue 18 of 2018, issue 60 of 2021 and issue 20 of 2025) is hereby repealed.

§ 4. Ordinance No. 68 of 10.06.2021 on the reserves of pension insurance companies for guaranteeing the gross amount of contributions to universal pension funds (promulgated, SG, issue 52 of 2021; amended, issue 64 of 2022 and issue 65 of 2025) is hereby repealed.

§ 5. This ordinance enters into force on January 1, 2027.

§ 6. This ordinance is issued on the basis of Art. 123ch, para. 8 and Art. 193a, para. 9 of the SSC in connection with § 192, item 1 of the transitional and final provisions of the Law on Amendment and Supplement to the Social Security Code (SG, issue 27 of 2026) and was adopted by Decision No. 282-H of June 23, 2026, of the Financial Supervision Commission.

Chairman: Vasil Golemanski