Ordinance No. 68 of 10.06.2021 on 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amended, No. 65 of 08.08.2025, effective from the date of introduction of the euro in the Republic of Bulgaria; repealed, No. 61 of 03.07.2026, effective from 01.01.2027.

Adopted with Decision No. 216-N of 10.06.2021 of the Commission for Financial Supervision.

Art. 1. This Ordinance defines the requirements for the formation, calculation, and maintenance of reserves of pension and insurance companies for guaranteeing the gross amount of contributions to universal pension funds, the replenishment of 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 be in the amount of 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 supplement 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 Commission for Financial Supervision 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 in Annexes No. 1 - 5.

Final Provisions

§ 1. In Ordinance No. 12 of 10.12.2003 on the method and procedure for determining the minimum yield in the management of assets of funds for additional mandatory pension insurance, for covering the difference to the minimum yield, and for forming and using reserves for guaranteeing the minimum yield (pub., State Gazette, No. 110 of 2003; corrected, No. 1 of 2004; amended and supplemented, No. 17 of 2004, No. 29 of 2005, No. 57 of 2007, and No. 50 of 2018), the following amendments and supplements are made:

1. In Art. 6, after the word "submit," the words "to the Commission for Financial Supervision" are added, and the words "according to the form approved by the Deputy Chairman of the Commission for Financial Supervision, heading the "Insurance Supervision" Directorate" are replaced with "according to the form in Annex No. 3."

2. In Art. 7:
   a) para. 1 is created:
   "(1) Every pension and insurance company managing a fund for additional mandatory pension insurance shall create, using its own funds, a reserve under Art. 193, para. 8 of the Social Insurance 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 additional mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Insurance Code, after recalculating the size of its reserve as of the previous working day, the pension and insurance company may decide to supplement it with its own funds. The decision shall specify the specific amount of funds with which the assets covering the reserve are supplemented. (2) The supplementation 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 additional 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. Pension and insurance companies shall submit to the Commission for Financial Supervision a report on the formation of a reserve for guaranteeing the minimum yield from own funds and attachments thereto according to the form in Annexes No. 4 - 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 Insurance Code are used to cover the difference to the minimum yield, the pension and insurance company shall submit to the Commission for Financial Supervision a report according to the form in Annex No. 9 by the end of the working day in which the covering of the difference to the minimum yield was carried out."

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 additional mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Insurance Code, after recalculating the size of its reserve as of the previous working day, the pension and insurance company may decide to release funds from it. The decision shall specify the specific amount of funds 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 in accordance with Art. 193, para. 8 of the Social Insurance Code, the value of the assets covering it exceeds 1.5 percent of the net assets of the respective fund for additional mandatory pension insurance, reduced by the funds of the reserve under Art. 193, para. 7 of the Social Insurance Code, the pension and insurance company shall release the excess from its reserve to bring its size into compliance with this limitation. (4) The release of funds from the reserve in accordance with para. 3 shall be carried out by the end of the month to which the recalculation under Art. 193, para. 8 of the Social Insurance Code relates."

8. Paragraphs 1 - 3 of the transitional and final provisions are repealed.

9. Annex No. 3 to § 1 and 3 is repealed.

10. A new Annex No. 3 to Art. 6 is created:
    "Annex No. 3 to Art. 6"

11. Annex No. 4 to Art. 9 is created:
    "Annex No. 4 to Art. 9"

12. Annex No. 5 to Art. 9 is created:
    "Annex No. 5 to Art. 9"

13. Annex No. 6 to Art. 9 is created:
    "Annex No. 6 to Art. 9"

14. Annex No. 7 to Art. 9 is created:
    "Annex No. 7 to Art. 9"

15. Annex No. 8 to Art. 9 is created:
    "Annex No. 8 to Art. 9"

16. Annex No. 9 to Art. 15 is created:
    "Annex No. 9 to Art. 15"

§ 2. Paragraph 1, items 1, 5, 6, and 8 - 16 shall enter into force on 1.09.2021.

§ 3. This Ordinance is issued on the basis of Art. 193a, para. 9 of the Social Insurance Code and is adopted with Decision No. 216-N of 10.06.2021 of the Commission for Financial Supervision.

Chairman: Boyko Atanasov

Annex No. 1 to Art. 5

(Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of introduction of the euro in the Republic of Bulgaria)

Annex 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 introduction of the euro in the Republic of Bulgaria)

Annex 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 introduction of the euro in the Republic of Bulgaria)

Annex No. 4 to Art. 5

(Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of introduction of the euro in the Republic of Bulgaria)

Annex No. 5 to Art. 5

(Amended - State Gazette, No. 65 of 08.08.2025, effective from the date of introduction of the euro in the Republic of Bulgaria)

Transitional and Final Provisions to the Ordinance on Amendment of Ordinance No. 63 of 8 November 2018 on the Requirements for the Content, Periodicity of Preparation, and Deadlines for Submission of Reports for Supervisory Purposes 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. In Ordinance No. 68 of 10.06.2021 on Reserves of Pension and Insurance Companies for Guaranteeing the Gross Amount of Contributions to Universal Pension Funds (State Gazette, No. 52 of 2021), the following amendments are made:

1. Annex No. 2 to Art. 5 is amended as follows:
   "Annex No. 2 to Art. 5"

2. Annex No. 3 to Art. 5 is amended as follows:
   "Annex No. 3 to Art. 5"

Provisions to the Ordinance on Amendment and Supplement of Ordinances of the Commission for Financial Supervision

(State Gazette, No. 65 of 08.08.2025, effective from 08.08.2025)

§ 10. In Ordinance No. 68 of 10 June 2021 on 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 annexes, the word "leva" is replaced everywhere with "euro."

§ 11. All reports approved with the Ordinance under § 10, which relate to a date preceding the date of introduction of the euro in the Republic of Bulgaria, shall be prepared according to the previous procedure.