Supplementary Pension Insurance

Part of the three-pillar pension system in Bulgaria. It is implemented through compulsory and voluntary insurance funds managed by licensed pension insurance companies. It includes Supplementary Compulsory Pension Insurance (SMPI) in universal and professional pension funds for persons born after 1959 and for workers for employees working under the conditions of the first and second occupational hazard categories (2nd pillar), as well as Supplementary Voluntary Pension Insurance (SVPI) for all persons who wish to accumulate supplementary pension (3rd pillar). It operates on a capital principle, where insurance contributions accumulate in individual accounts, invested, and used to pay supplementary pensions upon upon the retirement, disability, or death of the insured person.