The report, Bulgaria: Ensuring PensionSystem Sustainability Pension Reform Policy Note was writtenin September 2009. The report states that the Bulgarianpension system has undergone significant and well designedreform in 2000-2003. However, attempts to restore financialself-sustainability of the pension scheme were not assuccessful as envisaged.Projections presented in this notesuggest that recently introduced government contributionsare insufficient to achieve financial sustainability andintroduce growing distortions into the financing system.Additional reforms to the system will be needed to meetthese challenges.Among the suggested reforms are; ensuringautomatic sustainable pension indexation mechanism free ofad hoc interventions; attempting to further increaseeffective retirement age by reviewing early retirement rulesand eliminating gender differences in retirement ages. Acontinued slow increase of retirement ages for both gendersshould also be considered; further strengthen disabilitycertification processes to respond to likely increase indisability claims due to the economic downturn; strengthenlong term financial planning, including revision ofcontribution rates which would be more compatible withlong-term fiscal sustainability, and consider an exitstrategy for formalized Government contribution to the scheme.
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