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<h1>Social Security Programs Throughout the World: Europe, 2002</h1>
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<div class="innards">
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<h1>Bulgaria</h1>
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<div class="exchangeRate">Exchange rate: U.S.$1.00 equals 2.18 leva.</div>
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<h2>Old Age, Disability, and Survivors</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1924.</p>
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<p><span class="h4">Current law:</span> 2000 (code for compulsory social insurance).</p>
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<p><span class="h4">Type of program:</span> Dual social insurance system and mandatory private insurance.</p>
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<p>Note: A new system consisting of a mandatory social insurance first pillar plus a second pillar of individual accounts was implemented in January 2002. Coverage under the first pillar is universal. The mandatory private insurance under the second pillar covers all employees born after December 31, 1959.</p>
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<h3>Coverage</h3>
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<p>Employees, self-employed persons, artists, craftsmen, and farmers.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> 21.75% of earnings (social insurance) and 0.5% of earnings (mandatory private insurance).</p>
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<p><span class="h4">Self-employed person:</span> 29% of declared income (social insurance) and 2% of declared income (mandatory private insurance).</p>
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<p><span class="h4">Employer:</span> 7.25% of payroll (social insurance) and 1.5% of payroll (mandatory private insurance).</p>
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<p><span class="h4">Government:</span> Any deficit in the public scheme.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Old-age pension (social insurance):</span> Age 61 and 6 months (men) and age 56 and 6 months (women); to be increased by 6 months every year until 2009 when the retirement age will be age 63 (men) and age 60 (women). The insured's age plus the insured's length of insurance must be equal to at least 100 points for men and 90 points for women (individuals are awarded one point for each year of age as well as one point for each year of insurance coverage).</p>
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<p><span class="h4">Disability pension for general disease (social insurance):</span> No minimum period of affiliation for individuals under age 20 or the blind; 1 year for those aged 25 to 29; 3 years for those aged 30 to 40; and 5 years' affiliation for those above age 40.</p>
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<p><span class="h4">Disability pension for work injury or occupational disease (social insurance):</span> No minimum period of affiliation.</p>
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<p><span class="h4">Survivor pension (social insurance):</span> The deceased had 5 years of service (3 years if deceased was aged 20 to 25) or was a pensioner.</p>
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<p><span class="h4">Old-age pension (mandatory private insurance):</span> All employees born after December 31, 1959.</p>
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<p><span class="h4">Social pension:</span> Age 70 and income-tested, or 16 years of age with a reduced capacity to work of more than 71%.</p>
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<h3>Old-Age Benefits</h3>
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<p><span class="h4">Old-age pension (social insurance):</span> One percent of taxable income for every year of insurance (prorated for any partial year) up to a maximum of four times the social pension.</p>
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<p>Minimum pension is 115% of the social pension.</p>
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<p><span class="h4">Old-age pension (mandatory private insurance):</span> Benefits are paid as a life-long pension and are determined on the basis of the accumulated capital in the individual account of the members and life expectancy as established by the State Insurance Supervision Agency. Benefits are paid by the private fund and no annuity is bought.</p>
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<p><span class="h4">Social pension:</span> 44 leva a month.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability pension for general disease (social insurance):</span> Based on the number of years of contributions, taxable income, and age of the insured if younger than retirement age. Depends on the degree of disability.</p>
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<p><span class="h4">Disability pension for work injury or occupational disease (social insurance):</span> Based on the number of years of contributions, taxable income, and age of the insured if younger than retirement age. Depends on the degree of disability.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension (social insurance):</span> One survivor, 50% of the disability pension of the insured; two survivors, 75%; three or more survivors, 100%.</p>
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<p>The minimum pension for each survivor is 90% of the social pension (44 leva a month).</p>
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<h3>Administrative Organization</h3>
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<p>National Social Security Institute administers the public social insurance scheme.</p>
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<p>State Insurance Supervision Agency supervises the mandatory private scheme.</p>
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<h2>Sickness and Maternity</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1918.</p>
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<p><span class="h4">Current laws:</span> 1998 (health insurance law) and 2000 (code for compulsory social insurance).</p>
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<p><span class="h4">Type of program:</span> Social insurance.</p>
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<h3>Coverage</h3>
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<p><span class="h4">Cash benefits:</span> Employees, self-employed persons, members of liberal professions, artists, craftsmen, and farmers. Covered individuals must be insured for all contingencies.</p>
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<p><span class="h4">Medical care:</span> Compulsory insurance for all residents.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> Cash benefits, 0.75% of earnings. Medical care, 1.5% of earnings.</p>
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<p><span class="h4">Employer:</span> Cash benefits, 2.25% of payroll. Medical care, 4.5% of payroll.</p>
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<p><span class="h4">Government:</span> Cash benefits, none. Medical care, 80% of hospital care.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Cash sickness and maternity benefits:</span> Six months of insurance period. No qualifying period is required for maternity benefit.</p>
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<p><span class="h4">Medical care:</span> Residence in the country.</p>
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<h3>Sickness and Maternity Benefits</h3>
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<p><span class="h4">Sickness benefit:</span> 80% of the average daily gross wage or the average daily insurance basis for the 6 calendar months before the onset of sickness.</p>
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<p><span class="h4">Maternity benefit:</span> 90% of the daily insurance basis. The benefit is paid for a period of 135 days, commencing 45 days before the expected date of childbirth.</p>
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<p><span class="h4">Funeral grant:</span> Two minimum wages (or 200 leva).</p>
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<h3>Workers' Medical Benefits</h3>
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<p>Health insurance system introduced in 1999.</p>
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<p>Medical services are provided directly to patients according to a National Framework contract between medical institutions and the National Health Insurance Fund and include general and specialist care in health centers, outpatient departments of hospitals, or at home; hospitalization; prescribed medicines; dental care; and necessary appliances.</p>
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<h3>Dependents' Medical Benefits</h3>
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<p>The same as for insured workers (see above).</p>
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<h3>Administrative Organization</h3>
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<p>National Health Insurance Fund.</p>
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<p>National Social Security Institute.</p>
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<h2>Work Injury</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1924.</p>
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<p><span class="h4">Current law:</span> 2000 (code for compulsory social insurance).</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<h3>Coverage</h3>
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<p>Employed persons.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> None.</p>
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<p><span class="h4">Employer:</span> 0.7% of payroll.</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Work injury benefits:</span> No minimum qualifying period.</p>
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<h3>Temporary Disability Benefits</h3>
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<p>Calculated as 90% of earnings. Payable from the first day of incapacity until recovery or certification of long-term disability.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Permanent disability pension:</span> Benefit depends on the degree of loss of work capacity, from 50% to 100%.</p>
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<p><span class="h4">Minimum disability pension:</span> Benefits are expressed as a percentage of the social pension (44 leva a month). If incapacity is determined to be more than 90%, 150% of the social pension is paid; if incapacity is between 71% and 90%, 140% of the social pension is paid; if incapacity is between 50% and 70%, 115% of the social pension is paid.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> One survivor receives 50% of the work injury disability pension of the insured; two survivors receive a combined total of 75%; three or more survivors receive a combined total of 100%.</p>
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<p>The minimum pension is 90% of the social pension (44 leva a month).</p>
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<h3>Administrative Organization</h3>
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<p>National Social Security Institute.</p>
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<h2>Unemployment</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1925.</p>
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<p><span class="h4">Current law:</span> 2002 (code for compulsory social insurance, amended 2002).</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<h3>Coverage</h3>
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<p>Employed persons.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> 1% of earnings.</p>
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<p><span class="h4">Employer:</span> 3% of payroll.</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Unemployment benefit:</span> Nine months of insurance period.</p>
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<h3>Unemployment Benefits</h3>
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<p>Calculated as 60% of average earnings for the last 9 months. The duration of benefit depends on the length of service and increases from 4 months of payment for the minimum service period of up to 3 years to 12 months of payment for more than 25 years of service.</p>
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<h3>Administrative Organization</h3>
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<p>National Social Security Institute.</p>
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<p>Employment Agency of the Ministry of Labor and Social Policy.</p>
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<h2>Family Allowances</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1942.</p>
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<p><span class="h4">Current law:</span> 1968.</p>
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<p><span class="h4">Type of program:</span> Employment-related system.</p>
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<h3>Coverage</h3>
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<p>Employees, self-employed persons, artists, craftsmen, and farmers. Covered individuals must be insured for all social risks.</p>
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<p>Special systems for students in higher education, families of military personnel, families of unemployed, and single mothers.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> None.</p>
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<p><span class="h4">Employer:</span> None.</p>
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<p><span class="h4">Government:</span> Total cost.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Family allowances:</span> No minimum qualifying period.</p>
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<h3>Family Allowance Benefits</h3>
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<p><span class="h4">Family allowances:</span> 8.54 leva a month for each child below age 16 (or age 18 if the child attends secondary school); 36% of the minimum wage (100 leva) for a disabled child.</p>
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<p><span class="h4">Birth grant:</span> 100 leva on the birth of the first child, 200 leva for the second, 250 leva for the third, and 100 leva on the birth of each subsequent child.</p>
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<h3>Administrative Organization</h3>
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<p>National Social Security Institute.</p>
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<p>Municipal Social Assistance Centers (for uninsured parents).</p>
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