That Is Why The Capital- Based Part Of The Pensioning Off Systems Need To Develop, Said The FSC Deputy- Chairman, Mr Biser Petkov
Mr Petkov, the FSC is hosting the international conference dedicated to the additional superannuation insurance development in the EU. Tell us more about the event, the idea and the partnership with Poland, please.
The “Additional Superannuation Insurance in the EU and the Challenges The New Members Are to Face” international conference is one of the activities suggested the Phare project- consolidation of the administrative capacity of the Financial Supervision Commission, application of the European legislation on securities, superannuation insurance. Our partner is the Polish Insurance and Superannuation Funding Supervision Commission. The event is taking place days before Bulgaria becomes an actual EU member. That is why the conference is of even higher importance, knowing and applying the EU legislation. Participation invitations were sent to the regulatory administrations of Romania, Croatia, Macedonia, Turkey, Serbia etc.
Tell us more about the lecturers?
The lecturers invited are leading experts in the fields of superannuation insurance, higher education and insurance supervision. Mr Yves Stevenson is a social law professor at a Belgian university, he will be commenting on the state and tendencies of the privately managed superannuation insurance schemes in the EU countries. Mr Michali Erdioulsh, the CEIOPS Professional Pensioning Schemes chairman, will be talking about the cross- border operations of the superannuation insurance institutions in view of the 2003/ 41 EU decree. Ms Jacqueline Lommen, a senior counsellor on control policy at the Dutch National bank, will be talking about supervision practices. Mr Tibor Parniczky, an IOPS regional coordinator, will be commenting on regulatory decisions and practices. Professor Voicheh Ottho, the dean deputy of the Economy Department at Warsaw University, will introduce the problems Poland was facing when the accumulated resources had to be paid as compulsory superannuation insurance installments.
What way should the additional superannuation insurance be going?
The EU countries are facing serious problems in view of the population aging and the unbalanced ration of the number of citizens engaged in employment and those who are not. The demographic processes in progress are an ordeal for the traditional stability of the expenditures- covering systems. A survey reads that notwithstanding the reformations made in the 1990's, the population aging is to result in a 3.5% of the GDP higher expenditures on public pensions. That is why the capital- based part of the pensioning off systems need to develop, so the pension amounts be reasonable and stable when the expenditures- covering coefficient is dropping. Currently the privately managed superannuation funding resources in the EU make a significant part of the pensioners' incomings (35% in the Netherlands and 30% in the UK). The additional superannuation insurance will become more and more important.
What are the challenges Bulgaria will be facing?
The pensioning off systems organization of the EU member countries is different from the one operating in Bulgaria. Superannuation insurance is provided by the employers, in Western Europe, the so called professional superannuation funding system, which is the second pillar of the insurance model there. The law decrees mainly regulate these relations. Introducing the same legislation is the challenge we are facing, as a regulatory body. The greater competition is the challenge the insurance business will be facing.
What are your expectations?
I expect the conference to be a an interesting and useful discussion in favour of the participants. We have invited officials from the administrative departments involved in superannuation insurance. I hope the forum will assist the steps to be taken in order to provide the Bulgarian citizens with an operational additional superannuation insurance system.
