Ordinance No. 52 of 21.10.2016 on the Procedure and Method for Deducting Fees under Article 201(1)(2)-(3) and Article 256(1)(3) of the Social Security Code Collected by Pension Insurance Companies

ORDINANCE No. 52 of 21.10.2016 on the Procedure and Method for Deducting Fees under Article 201(1)(2) and (3) and Article 256(1)(3) of the Social Security Code, Collected by Pension Insurance Companies (Title amended - State Gazette, No. 31 of 2018, effective from 19.11.2018; amended, No. 55 of 2021) Published - State Gazette, No. 87 of 04.11.2016; amended and supplemented, No. 31 of 10.04.2018, effective from 19.11.2018; amended and supplemented, No. 55 of 02.07.2021; amended, No. 70 of 20.08.2024 Adopted with Decision No. 162-N of 21 October 2016 by the Commission for Financial Supervision

Section I
(New - State Gazette, No. 31 of 2018, effective from 19.11.2018) General Provisions

Art. 1. (Amended - State Gazette, No. 31 of 2018, effective from 19.11.2018; amended, No. 55 of 2021; amended, No. 70 of 2024.) This Ordinance regulates the procedure and method for deducting:

1. (amended - State Gazette, No. 70 of 2024) the investment fee, collected by pension insurance companies in the management of a fund for additional mandatory pension insurance, a fund for additional voluntary pension insurance, and a fund for additional voluntary pension insurance under occupational schemes;
2. the fee, calculated on the value of the net assets of the funds for the purpose of making payments, collected by pension insurance companies in the management of these funds.

Section II
(New - State Gazette, No. 31 of 2018, effective from 19.11.2018) Procedure and Method for Deducting the Investment Fee Collected by Pension Insurance Companies in the Management of Funds for Additional Mandatory Pension Insurance

Art. 2. (Amended - State Gazette, No. 31 of 2018, effective from 19.11.2018.) The investment fee under Article 201(1)(2) of the Social Security Code is accrued every working day as a liability of the fund for additional mandatory pension insurance to the pension insurance company managing it.

Art. 3. (Amended and supplemented - State Gazette, No. 31 of 2018, effective from 19.11.2018.) (1) (Previous text of Art. 3, amended - State Gazette, No. 31 of 2018, effective from 19.11.2018.) The amount of the investment fee for each working day is determined by the following formula:

D = A * i * n / P

where:
D is the amount of the investment fee for the day; A - the value of the net assets at the end of the previous working day; n - the number of calendar days from the previous working day to the current working day, including the current; P - the number of calendar days in the year; i - the amount of the investment fee in percent for the corresponding day "i", determined in the fund's regulations.

(2) (New - State Gazette, No. 31 of 2018, effective from 19.11.2018.) In the event that the last day or last days of the year are non-working days, when determining the amount of the investment fee for the last working day of the year, the fee due for the non-working days until the end of the year is also included.

Art. 4. (Amended - State Gazette, No. 55 of 2021.) The investment fee is transferred to the account of the pension insurance company from the monetary funds of the fund by the 5th working day of the following month in an amount determined by the following formula:

M = Σ Dk

where:
M is the amount of the investment fee for the month; N - the number of working days in the month; Dk - the amount of the investment fee for working day "k".

Art. 5. The amount due for the investment fee is approved every month according to the procedure determined by the management body of the pension insurance company managing the fund.

Section III
(New - State Gazette, No. 31 of 2018, effective from 19.11.2018) Procedure and Method for Deducting the Investment Fee Collected by Pension Insurance Companies in the Management of Funds for Additional Voluntary Pension Insurance

Art. 5a. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018.) The final amount of the investment fee under Article 256(1)(3) of the Social Security Code is determined based on the annual income from investing the funds of the fund for additional voluntary pension insurance, respectively the fund for additional voluntary pension insurance under occupational schemes.

Art. 5b. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018.) (1) The amount of the investment fee for the period from the beginning of the year to the previous working day is calculated every working day.

(2) If a positive result from the investment of the fund's funds is achieved, the amount of the investment fee under para. 1 is calculated by the formula:

P = B * i / 100

where:
P is the amount of the investment fee;
B – the positive result from the investment of the fund's funds from the beginning of the year; i – the amount of the investment fee in percent, determined in the fund's regulations.

(3) When a positive result from the investment of the fund's funds is not achieved, the amount of the investment fee under para. 1 is zero.

Art. 5c. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018.) (1) In the event of a change in the investment fee percentage during the year, instead of the formula under Art. 5b(2), the following formula is applied:

P = B * i_new / 100 + K

where:
P is the amount of the investment fee;
B – the positive result from the investment of the fund's funds from the beginning of the year; i_new – the amount of the investment fee in percent, determined in the fund's regulations after the change; K – the correction coefficient.

(2) The correction coefficient K is equal to:

K = B_min * (i_old – i_new) / 100

where:
B_min is the smaller of B and B0, where B is the positive result from the investment of the fund's funds from the beginning of the year, and B0 is the positive result from the investment of the fund's funds from the beginning of the year to the working day preceding the change in the investment fee size; i_old – the amount of the investment fee in percent, determined in the fund's regulations before the change; i_new – the amount of the investment fee in percent, determined in the fund's regulations after the change.

(3) The correction coefficient K is not applied when:

1. a positive result from the investment of the fund's funds for the period from the beginning of the year to the working day preceding the change in the investment fee size in the fund's regulations has not been achieved;
2. after the change in the investment fee size in the fund's regulations, a moment occurs from which, counting from the beginning of the year, there is no positive result from the investment of the fund's funds.

Art. 5d. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018; amended, No. 55 of 2021.) To determine the liabilities, respectively receivables of the fund, the investment fee under Art. 5b(1) is compared daily with the sum of the funds transferred from the beginning of the year to the previous working day for the investment fee from the fund to the pension insurance company, reduced by the sum of the funds refunded from the beginning of the year to the previous working day for the investment fee from the pension insurance company to the fund.

Art. 5e. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018; amended, No. 55 of 2021.) (1) (Amended - State Gazette, No. 55 of 2021.) The amount due for the investment fee, recorded as a liability of the fund at the end of each month, is transferred to the account of the company from the monetary funds of the fund by the 5th working day of the following month.

(2) (Amended - State Gazette, No. 55 of 2021.) The excess funds for the investment fee transferred from the fund to the managing pension insurance company, recorded as a receivable of the fund at the end of each month, are refunded to the account of the fund by the 5th working day of the following month.

Art. 5f. (New - State Gazette, No. 31 of 2018, effective from 19.11.2018.) The amount due for the investment fee is approved every month according to the procedure determined by the management body of the pension insurance company managing the fund.

Section IV
(New - State Gazette, No. 31 of 2018, effective from 19.11.2018; repealed, No.
55 of 2021)
Administrative Liability

Art. 6. (Repealed - State Gazette, No. 55 of 2021).

Section V
(New - State Gazette, No. 55 of 2021)
Procedure and Method for Deducting the Fee Collected by Pension Insurance Companies in the Management of Funds for Making Payments

Art. 7. (New - State Gazette, No. 55 of 2021.) The fee under Article 201(1)(3) of the Social Security Code is accrued to the last working day of each month as a liability of the fund for the payment of life pensions, respectively the fund for installment payments, to the pension insurance company managing it.

Art. 8. (New - State Gazette, No. 55 of 2021.) The amount of the fee under Art. 7 is calculated by the formula:

M = (Am - A0) * m / p * i

where:
M is the amount of the fee for the corresponding month; Am - the value of the net assets of the fund for making payments to the last working day of the corresponding month before the accrual of the fee; A0 - the value of the net assets of the fund for making payments to the last working day of the previous month after the accrual of the fee; m - the number of calendar days in the month; p - the number of calendar days in the year in which the month falls; i - the amount of the fee in percent, determined in the rules of the fund for making payments, and when the amount of the fee is changed during the month i, it is calculated by the formula:

i = (i1 * d1 + i2 * d2) / m

where:
i1 and i2 are respectively the old and new amounts of the fee; d1 and d2 - the number of days during which the old and new fees were in force, respectively, as d1 + d2 = m.

Art. 9. (New - State Gazette, No. 55 of 2021.) The amount due for the fee under Art. 7 is approved every month according to the procedure determined by the management body of the pension insurance company managing the corresponding fund.

Art. 10. (New - State Gazette, No. 55 of 2021.) The fee under Art. 7 is transferred to the account of the pension insurance company from the monetary funds of the fund by the 5th working day of the following month.

Final Provision

Paragraph sole. (Supplemented - State Gazette, No. 31 of 2018, effective from 19.11.2018.)
The Ordinance is issued on the basis of Article 201(2) and Article 256(2) of the Social Security Code and is adopted with Decision No. 162-N of 21 October 2016 by the Commission for Financial Supervision.

Chairman: Karina Karaivanova

Transitional and Final Provisions to the Ordinance on Amendment and Supplementation of 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 (State Gazette, No. 70 of 20.08.2024)

§ 20. In Ordinance No. 52 of 21.10.2016 on the procedure and method for deducting fees under Article 201(1)(2) and (3) and Article 256(1)(3) of the Social Security Code, collected by pension insurance companies (published, State Gazette, No. 87 of 2016; amended and supplemented, No. 31 of 2018, No. 55 of 2021), in Art. 1, item 1, the words "funds for additional pension insurance" are replaced with "fund for additional mandatory pension insurance, fund for additional voluntary pension insurance, and fund for additional voluntary pension insurance under occupational schemes".