Ordinance No. 10 of 16.07.2026 on Capital Base Requirements for Pension Insurance Companies, Minimum Liquid Funds for the Company and Its Managed Funds, and Its Recovery Plan

ORDINANCE No. 10 of 16.07.2026 on the requirements for the capital base of the pension insurance company, the minimum liquid funds of the company and the funds managed by it, and its recovery plan Pub. - State Gazette, No. 67 of 24.07.2026, effective from 01.01.2027 Adopted by Decision 290-N of 16.07.2026 of the Commission for Financial Supervision

Section I
General Provisions

Art. 1. This Ordinance defines the requirements for:

1. the structure and elements of the capital base of the pension insurance company and the method of its calculation;
2. the minimum liquid funds of the pension insurance company and of the funds for additional pension insurance and funds for making payments managed by it;
3. the structure and content of the recovery plan to bring the capital base into compliance with the requirements of the Social Security Code (SSC).

Section II
Structure, Elements and Calculation of the Capital Base

Art. 2. (1) The following elements are included in the capital base of the pension insurance company:

1. the paid-up share capital;
2. the "Reserve Fund", formed in accordance with Art. 246, para. 2 of the Commerce Act;
3. other general-purpose reserves provided for in the company's articles of association, which are formed at the expense of its profit after taxation and/or by monetary contributions of the shareholders;
4. the reserve under Art. 123c, para. 1 of the SSC;
5. the reserves under Art. 193a, para. 1 of the SSC;
6. the reserve under § 188, para. 3 of the transitional and final provisions of the Law on Amendment and Supplement to the Social Security Code (State Gazette, No. 27 of 2026);
7. the profit for the current period;
8. undistributed profit from previous periods;
9. a reserve formed by subsequent valuations of assets and liabilities leading to an increase in the reserve.

(2) The elements under para. 1 are included in the capital base only if they meet the following requirements:

1. the funds are not subject to legal or factual restrictions that hinder their use in accordance with their purpose;
2. their presence is reflected in the financial statements of the pension insurance company.

(3) The capital base under para. 1 is reduced by:

1. the nominal value of repurchased own shares;
2. the loss for the current period;
3. uncovered losses from previous years;
4. the reserve formed by subsequent valuations of assets and liabilities leading to a reduction in the reserve;
5. intangible assets;
6. expenses for future periods;
7. capitalized costs under contracts with customers;
8. assets for current taxes;
9. deferred tax assets.

Art. 3. The capital base available to the pension insurance company is calculated by reducing the sum of the values of the elements under Art. 2, para. 1, meeting the requirements of Art. 2, para. 2, by the sum of the values of the elements under Art. 2, para. 3.

Section III
Minimum Liquid Funds of the Pension Insurance Company and of the Funds Managed by It

Art. 4. (1) The liquid funds of the pension insurance company are:

1. cash in hand;
2. cash in settlement accounts in banks that are not in insolvency proceedings;
3. cash in deposits in banks that are not in insolvency proceedings, payable on demand without loss of accrued interest;
4. money market instruments under Art. 176, para. 1, item 2 of the SSC;
5. receivables from the funds managed by the company;
6. debt securities under Art. 176, para. 1, item 1 of the SSC with a remaining maturity of no more than one year;
7. debt securities under Art. 176, para. 1, item 1, letters "a" - "c" of the SSC outside those specified in item 6, which simultaneously meet the following requirements:
   a) are not held to maturity; b) have an investment credit rating; and c) are admitted to trading on a regulated market in a Member State or on a market under Art. 5, para. 1 of Ordinance No. 29 of 12.07.2006 on the requirements for investments of funds for additional pension insurance, sub-funds therein, and funds for making payments under Art. 176, para. 4 of the Social Security Code (State Gazette, No. 62 of 2006).

(2) The liquid cash funds of the pension insurance company are cash funds in the following currencies:

1. euro, US dollars, and Swiss francs;
2. other currencies in which the current liabilities of the pension insurance company are denominated, to the extent necessary for the fulfillment of these liabilities.

(3) In the event of a pledge of assets or if there is any other restriction on their use by the pension insurance company, they are not included in the liquid funds under para. 1.

Art. 5. The pension insurance company must constantly have liquid funds in an amount not less than the current liabilities of the company.

Art. 6. (1) The liquid funds of a fund for additional pension insurance are the assets of the fund under Art. 4, para. 1, items 1 - 4, 6, and 7.

(2) The liquid cash funds of a fund for additional pension insurance are cash funds in the following currencies:

1. euro, US dollars, and Swiss francs;
2. other currencies in which the current liabilities of the fund for additional pension insurance are denominated, to the extent necessary for the fulfillment of these liabilities.

(3) Assets with respect to which there is a restriction on their use by the fund for additional pension insurance are not included in the liquid funds under para. 1.

(4) Each professional pension fund and fund for additional voluntary pension insurance without sub-funds must constantly have liquid funds in an amount not less than the sum of:

1. the amounts accrued for payment to insured persons, including persons with disclosed shares under Art. 127, para. 6 and 7 and Art. 230, para. 10 of the SSC, pensioners, and their heirs;
2. current liabilities to the pension-insurance company;
3. other current liabilities outside those under item 2;
4. funds transferred during the previous month to funds for making payments.

(5) The fund for additional voluntary pension insurance under professional schemes must constantly have liquid funds in an amount not less than the sum of the amounts accrued for payment to insured persons, pensioners, and their heirs and the funds under para. 4, items 2 and 3.

(6) The liquid funds of sub-funds in a universal pension fund, in a fund for additional voluntary pension insurance, and in a voluntary pension fund for PEPP are determined separately for the sub-fund based on the assets acquired and liabilities assumed, respectively, in connection with its activity, as follows:

1. paras. 1 - 4 apply respectively;
2. liabilities of the sub-fund to another sub-fund in the same fund for additional pension insurance are excluded from the current liabilities under para. 4, item 3.

Art. 7. (1) The liquid funds of a fund for making payments are the assets of the fund under Art. 4, para. 1, items 1 - 4, 6, and 7.

(2) Liquid cash funds are cash funds in the following currencies:

1. euro, US dollars, and Swiss francs;
2. other currencies in which the current liabilities of the respective fund for making payments are denominated, to the extent necessary for the fulfillment of these liabilities.

(3) Assets with respect to which there is a restriction on their use by the respective fund for making payments are not included in the liquid funds under para. 1.

(4) Each fund for making payments must have at the end of each month:

1. liquid funds in assets of the fund under Art. 4, para. 1, items 1 - 4, 6, and 7 in an amount not less than the payments due to pensioners with granted life pensions, respectively, persons receiving periodic payments from it, and their heirs for the next 6 months and its other current liabilities;
2. liquid funds in assets of the fund under Art. 4, para. 1, items 1 - 3 in an amount not less than the payments due to pensioners, respectively, persons receiving deferred payments from it, and their heirs and its other current liabilities for the next month.

Section IV
Requirements for the Structure and Content of the Recovery Plan of the Pension Insurance Company

Art. 8. The recovery plan to bring the capital base of the pension insurance company, calculated in accordance with Art. 3, para. 1, into compliance with Art. 121c, para. 4 of the SSC, must necessarily contain:

1. a section on the current financial situation of the company, including:
   a) the balance sheet of the company as of the date of preparation of the recovery plan; b) an analysis of the financial situation of the company and the causes leading to the reduction of the capital base below the required amount under Art. 121c, para. 4 of the SSC; c) the amount of additional funds needed to bring the capital base to the amount under Art. 121c, para. 4 of the SSC;
2. a section on the planned measures to bring the capital base of the company into compliance with the amount under Art. 121c, para. 4 of the SSC, including:
   a) the deadline for bringing the capital base of the company into compliance with the amount under Art. 121c, para. 4 of the SSC; b) the specific measures and justification of how these measures will achieve the alignment of own funds with regulatory requirements; c) the deadlines for implementing the measures under letter "b"; d) the units and/or persons responsible for implementing the measures under letter "b"; e) the sources of funds for the implementation of the plan;
3. a section on the forecasted financial situation of the company, including:
   a) a forecast assessment of its revenues and expenses until the expiration of the deadline under item 2, letter "a"; b) a forecast balance sheet as of the end of the deadline under item 2, letter "a";
4. the number and date of the protocol with the decision of the governing body of the company, by which the recovery plan is adopted.

Transitional and Final Provisions

§ 1. Pension insurance companies submit the reports under Art. 10, para. 1 of Ordinance No. 10 of 29 June 2021 on the requirements for the solvency margin and own funds of the pension insurance company, its recovery plan, and the minimum liquid funds of the company and the funds managed by it (State Gazette, No. 59 of 2021) as of the end of December 2026 within the deadline of 20 January 2027 according to the previous procedure.

§ 2. Ordinance No. 10 of 29 June 2021 on the requirements for the solvency margin and own funds of the pension insurance company, its recovery plan, and the minimum liquid funds of the company and the funds managed by it (Pub., State Gazette, No. 59 of 2021; amended and supplemented, No. 29 and 82 of 2022, No. 70 of 2024, and No. 20 of 2025) is repealed.

§ 3. This Ordinance enters into force on 1 January 2027.

§ 4. This Ordinance is issued on the basis of Art. 121c, para. 14 of the SSC in conjunction with § 192 of the transitional and final provisions of the Law on Amendment and Supplement to the Social Security Code (State Gazette, No. 27 of 2026) and is adopted by Decision 290-N of 16 July 2026 of the Commission for Financial Supervision.

Chairman: Vasil Golemanski