All positions

positions 20

For effective reform of the Pension Insurance System
24.11.2011

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PROPOSALS FOR PENSION REFORM IN BULGARIA
15.08.2011

Bulgarian Industrial Association (BIA) has drawn up its own recommendations to the Cabinet on the main priorities of reform in some key areas. Proposals are due to report to the EU Council which makes recommendations for performance and necessary action on the National Reform Program 2011-2015, and the Convergence Program until 2014 at the beginning of the month. In late July the government decided to give two weeks of state institutions to propose new measures for reforms in the areas of pension reform, health, labor, education, business environment and increasing the efficiency of public finances and motivation of customs officials.
BIA continues to assert its principled position that the work to the future development and modernization of the pension system (POS) to preserve the philosophy and essence of the three-pillar model of pension insurance. BIA believes that we must continue efforts to ensure the long-term financial sustainability and stability of the POS.

1. Condition of the social security system.

1.1. Deformation in the application of basic principles of pension and social security.

1.2. Mixing of financial flows from pensions to those on social assistance.

1.3. Not keeping pace with the alarming trends in employment and demographic status.

1.4. Violated principles of management system - replacing the tripartite home with state domination.

1.5. Deformation of the direct link between contributions made, the amount of allocated pensions and time-limit for receipt.

1.6. Significant problems with the financing of early retirement.

1.7. Uncontrollable increase in the number of pensions granted "disability".

1.8. There are no economic incentives to increase contributions to the social security system.

1.9. Loss of confidence in the security system of a large part of the insured.

1.10. The share of "informal sector" in the insurance system remains sustainable.

1.11. Serious and a growing deficit in the state social insurance.

1.12. Lack objective information concerning the social security system.

1.13. There are no guarantees for funding of insured persons in pension funds.

1.14. Lack of competition among pension funds makes it impossible to ensure quality service to insured persons.

2. What we can do?

2.1. It is necessary to update the parametric framework for the development of POS for the next 20 years, taking into account the consequences of this economic crisis:
permanent decrease in the number of persons who make contributions as a result of: job losses and increased unemployment, discouraged growth, reducing the number of people with self-insurance is continuing emigration;
change in the insured - steadily growing proportion of individuals whose contributions are charged to the budget;
becoming increasingly direct and indirect state involvement in ensuring financial system stability.

2.2. Take a serious administrative reform in pensions in order to promote genuine tripartite principle in the management of POS as an important factor for increasing the efficiency of system management. It should include representatives of pensioner organizations in the Supervisory Board of the Institute on behalf of the state quota.

2.3. "Cleaning" of POS payments are not related insurance contribution of individuals. Pensions and social benefits to be borne by the competent authorities and institutions.

2.4. To create statutory restrictions on redistribution of funds within the "Pensions" Fund of Social Security in favor of pensions for early retirement. In order to ensure transparency and consistency in determining the amount of contributions and the granting of pensions to create separate funds within the "Pensions" Fund to OES for:
Officers Art. CSR 69 (MOI, MOD and Judiciary), subject to early retirement;

workers for the first and second category of work subject to early retirement;

2.5. The amount of contributions can not be reduced if there is no convincing evidence provided GDP growth for the next two years, to ensure financial stability of the insurance system.

2.6. To provide clarity and transparency of financial flows of the state, business and employee input and output system that provides pension insurance.

2.7. Both very smooth to increase retirement and retirement age as a condition for entitlement to pension. Required to take account of trends in demographics, changes in the structure of the labor market and the need to improve the financial stability of POS.

2.8. To adopt a set of measures to increase the fairness of the system.

In determining the amount of pension contribution of a person to POS to be the dominant factor, updated to the year;
To have the same incentives / sanctions to increase / decrease in pension for each year of pensionable service and age, over / under statutory. The parameters for this increase / decrease in pensions to be announced annually in the Law on Social Security budget.

To remove restrictions / ceiling / maximum amount of pension.
Pensions to be awarded in their actual size obtained by certain long-term formula. Not increasing at the expense of the amount of Social Security pensions to workers whose contribution is not sufficient to reach a specified minimum amount of pension.

2.9. State as an employer, insurer to be equivalent to its obligation to the insured by it. To do this:
working on service relationships to import monthly contributions received on behalf of their salary. For the purpose of these employees to increase once the fee in order not to reduce their income;
contributions for employees in state institutions to submit monthly expense budgets of the respective departments. In default of the same leaders to sanction the same manner as all other employers;
amount of contributions for certain categories of civil servants (Ministry of Interior, Defense, etc..) to align with the size and duration of receiving the pension.

2.10. To develop new, more objective and fair criteria to prevent the use of early retirement rights when operating conditions do not qualify. The main criterion is the assessment of risk and severity of work on specific jobs in which the action takes place. On this basis, to undertake re-categorization of all persons who use early retirement schemes.

2.11. Indexation of pensions can only be based on objective and pre-announced long-term mechanism, depending on the inflation rate, GDP growth, the increase in insurance income, rather than through ad hoc political decisions. This update to be included in the annual Budget Act PSS.

2.12. Radically amend the system for determining and granting of pensions for "disability." To ensure maximum equality, objectivity and transparency of use of this right to limit abuses in medical expertise in performance. Action needed:
Organization of inspections authorized by the Ministry of Health Services for the correctness of the grounds for granting the "wheel" of the pension committee of the TEMP. Checks are to specific target groups, according to preliminary sample. Suspected violations and corruption to widen the scope of the audit. MLSP and IB to provide the necessary organization and financing.
MoH, together with MLSP, NII and the social partners, propose to discuss in NCTC package of regulatory decisions (laws and / or instruments) for the introduction of additional sanctions on persons receive inappropriate rights, and those who violated them in the certification.
Tabling a proposal to NCTC to review the status and location of NEMC.

Review of remuneration of specialists who work and serve the NEPC system.MH and MLSP to make a proposal in preparation for the 2012 budget.
2.13. Creating conditions for competition between pension funds and reduce their costs of maintenance activities.
2.14. To review the official distribution system for those who have not chosen a universal fund and create conditions for improving the quality of service and increase awareness of individuals to choose self-fund.

3. Objectives of the proposed action:

3.1. To ensure long-term financial sustainability and stability of the insurance system;

3.2. To introduce economic incentives for participation in the insurance system;

3.3. To be bound by the amount and timing of receipt of a pension insurance contributions.

3.4. To promote the extension of age to participate in employment.

3.5. To create conditions for the transparency of expenditures of the consolidated budget and state revenue and expenditure and revenue and expe

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STATE fund education, which is not in need for the society and the economy
12.08.2011

Bulgarian Industrial Association (BIA) has drawn up proposals to the Cabinet on the main priorities of reform in some key areas. They are due to report to the EU Council which makes recommendations for performance and necessary action on the National Reform Program 2011-2015, and the Convergence Program until 2014 at the beginning of the month. In late July the government decided to give two weeks of state institutions to propose new measures for reforms in the areas of pension reform, health, labor, education, business environment and increasing the efficiency of public finances and motivation of customs officials.

Drastic reduction of qualified staff and specialists has emerged as a key problem that will hinder the development and functioning of entire sectors of the economy and spheres of social life. Is a significant threat to industry in the country, mostly in technical fields, particularly in terms of research and innovation, where there is a serious shortage of engineers and other qualified professionals. There are no specialists to acquire, develop and manufacture cutting-edge technologies. Anxiety is a state of health, where shortages already being felt, both by doctors and medical staff from the medium. The low level of utilization of investments associated with existing high technology and the introduction of new as well as funds for European programs, mainly as a lack of qualified specialists in this field.

Similarly, although still not as alarming is the situation in other sectors, which account for a shortage of qualified staff. At the same time in the ranks of the "army of unemployed" are a number of educated young people who can not find its implementation because of the disparity in their possession of the qualification requirements of the labor market.

Even more critical if things are taken into account factors such as demographic crisis and rising emigration - an aging population, reducing the number of people of working age and drain of skilled labor to wealthy European labor market.

I. Key findings on the state of education

1.1. Steady trend of annual increase in severance and early school leaving and the number of children not attending school, which ranks the country one of the last places in the EU on these indicators.

1.2. Decades in mainstream schools equalization rule and care for lagging students, at the expense of caring for the development of gifted and talented children.

1.3. Dramatically slowed the privatization of part of mainstream schools and the introduction of modern forms of interactive learning.

1.4. There is a growing imbalance between demand for skilled labor, and professions and specialties offered and the outcome of the educational system of human resources.

1.5. There remain significant disparities between education and the demands of the workplace to the average performance.

1.6. Do not follow the qualification and age structure of professionals and skilled workers by industry. There is a real danger of soon to be "stripped" from the whole industry experts that work to block them.

1.7. Deepen the structural problems of the labor market - a shortage of qualified technicians, a shortage of STEM-skills (Science, Technology, Engineering & Mathematics), unemployment of young graduates.

1.8. Low utilization of investments associated with existing high technology and the introduction of new, and funding programs in Europe - mainly due to lack of sufficiently qualified staff.

1.9. Feminization of the teaching profession, an aging specialist in the education system, lack of motivation in young people to realize the teaching profession and teaching, inadequate training, lack of interest and lack of knowledge about the processes in the real economy, technological innovation, business environment, etc .

1.10. Not equitable forms of ownership - state budget to fund schools and universities is directed only to the state.

1.11. The lack of objective criteria for accreditation of higher education has led to significant discrepancies between education and the demands of the workplace to the average values. In no way are the needs of the economy from specific experts with specific knowledge, skills and competencies.

1.12. Is a vicious practice of subsidized higher education in specialties that are unnecessary for the business and economy as a whole.

1.13. Worsening trend of significant decrease of students in degree "doctor", which creates a serious reduction of employment in science and research. This lag in comparison with other European Union countries is greatest. In this situation is difficult to expect significant developments in science, research and innovation in Bulgaria, despite their designation as European and national priorities.

II. What we can do?

2.1. Public financing system for pre-school, primary and secondary education should be based solely on the number of children in appropriate school, regardless of his property.

2.2. Of "involvement" of business in the additional funding of education are required statutory tax and other financial incentives.

2.3. Limiting early exit and removal of children from school and reverse the trend of annual increase in the number of children not attending school, can be achieved with the application of financial leverage - depriving the families who have children, absenteeism, or left school dropouts, all types of social benefits and payments.

2.4. To improve initial and continuing training of teachers, trainers, coaches and advisors by offering flexible training. To introduce an annual appraisal at the beginning of the school year and required periodic maintenance and training in universities during the summer months. Encourage internships for teachers and trainers in enterprises related to their teaching specialty.

2.5. To avoid the need leveling up a system of elite schools for children, Bulgarian language proficiency and extend the practice to the advanced study of foreign languages, mathematics, informatics, etc.

2.6. To fully use the potential of the nation's need:
- Through new combinations of objects and materials in schools providing general education to enable young people with one of the most common disorders associated with learning - dyslexia - to successfully complete their education;
- Creating a supportive environment for the integration of all children with special educational needs and / or chronic diseases in the public education system.

2.7. Make STEM-education more attractive for young people. The expansion of research into the curricula of primary and secondary education, enhancing the relationship between education and business.

2.8. Radical step of introducing E-government in social work, education and human resource management is building a system of compatible electronic registers, some of them:
Complete and accurate register of children who dropped out or school absenteeism - needed to implement the above measure;
Complete and accurate register of education and training profile of every citizen of the country - to be completed by educational and training institutions in the country.
Register of specialists in sectors and age composition.

2.9. It takes a radical change in practice to determine the qualification structure and the structure of professions and disciplines of education. State institutions, particularly the Ministry of Labor and Social Policy, Ministry of Economy, Energy and other line ministries, it is necessary to produce an annual analysis on the state of the workforce and the need for skilled labor, in coordination and consistency with sectored employers and trade unions. Based on this analysis to make application for the necessary personnel in the country for next 5 years and longer-term forecast: staff who will take the country after 15-20 years. Prepared application is consistent with the social partners.

2.10. To update the existing DOI (state educational standards) and to comply with the development and coordination between the social partners, professional standards, meeting European standards for all occupations.

2.11. In order to overcome the serious gap in our country in terms of coverage of employees in the "Lifelong Learning" is the urgent development of measures at national, regional and company level for the development of various forms of formal education and training and informal learning .

2.12. It is creating a national system for quality assurance of vocational education and training. It must include: state standard for quality training, criteria for assessing the quality of professional training in the institutions, system of internal and external assessment of learning outcomes in vocational training, responsible institutions with the functions, rights and obligations of the mechanisms interaction.

2.13. An important element of the monitoring and quality control of education is the introduction of an annual assessment of knowledge, skills and competencies of all graduates of vocational or higher, by an independent assessment outside the education system.

2.14. Split systems of teaching and assessment and creation of independent learning assessment system and specialized units for evaluation and validation.

2.15. It is building and implementing a credit system for authentication, accumulation and transfer of acquired learning outcomes. The system will provide an opportunity for mobility through the recognition of achieved learning outcomes set out in DOS / State Education Standards / acquisition of professional qualification.

2.16. Units of study for each occupation include acquired knowledge, skills and competencies that can be independently assessed and validated. For each unit learning outcomes are awarded credits after successful completion of its evaluation or recognition through the validation of formal and informal learning.

2.17. It is the introduction of the correct form of terminology for the third form of education - informal. With the current wording of the third form of education as "learning" to restrict the right of citizens to validate and certify the skills and knowledge obtained in any context, through informal education, unorganized, disorganized and scattered accumulation of knowledge and skills in the process of living. The proposal is supported by an official statement from the Institute for Bulgarian language to the used terminology.

2.18. To improve the practical vocational training to legally regulate the internship programs and specializations, and related financial relations between the secondary special schools and universities on the one hand, and providing internships and jobs according to the speciality.

2.19. No form of ownership of higher education must be the criterion to direct financial flows to one or another university. Money should follow students studying in a specific field, but regardless of form of ownership of the university.

2.20. Criteria for granting a subsidy from the state budget for higher education should be only one - the country needs at present and near future of staff with specific professions and specialties prepared in accordance with state application (t.2.8.). Identifying those needs and removal as the main criterion for financing the education of students studying in these particular professions and specialties, will be a prerequisite for overcoming the deepening gap between the specific needs of qualified farm and qualification structure of higher education.

2.21. Change in criteria for accreditation of higher education, so as to provide a certain quality of education offered in them, and the preparation of specialists with the necessary knowledge, skills and competencies, specialties and units specified in the order proposed in section 2.8.

2.22. Create incentives for continuing education in degree "Doctor" as a prerequisite for serious development of science, research and innovation in Bulgaria.

III. Objectives of the proposed action

3.1. Matching the quality of human resources (as well as possess competence and by profession) and the needs of society and economy of skilled personnel and requirements of jobs.

3.2. Increasing the efficiency of government funding for education.

3.3. Reducing the number of children not attending school or have left early or dropped out.

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BIA: "Reengineering" HEALTH, People with health insurance – at end of the queue
10.08.2011

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Bulgarian Industrial Association has a principled position that health is a fundamental value that should be a top priority of society. This is especially true in the current climate of severe demographic processes and the continuing emigration. A common vision for change in health care, which brings together government, stakeholders and the public. Health, guaranteeing new attitude to human health, improving health status, to motivate and provide higher quality of life.

1. State health system.

1.1. Low efficiency of operation of the health system - while continuously increasing costs of health indicators for health status did not improve.

1.2. Health system is highly bureaucratic.

1.3. Worsening inequality in the use of health services between different sections of the population and regions due to disparities in service quality and capabilities of hospitals.

1.4. Not exploit the potential of e-Health to improve the efficiency of the health system to ensure greater transparency in the system and to improve quality and control of medical services rendered.

1.5. Maintain a high proportion of those who do health insurance contributions. It takes effective action against them and the procedure for their healthcare.

1.6. The amount of contributions that the state does for its insured persons - pensioners, children, unemployed, students, does not correspond to costs that are incurred for their care.

1.7. Lacks the necessary organization, management and administrative capacity for timely utilization of funds from the EU funds provided to healthcare.

1.8. Due to lack of orderliness and consistency in actions not realize good ideas in healthcare. For example, the idea of reducing and restructuring of hospitals do not realize, because they were created preconditions for that - effective emergency care and more.

1.9. There were serious distortions in the structure, number of specialists in different disciplines and spatial distribution of qualified medical personnel. In recent years much of the specialty doctors left the country. Such is the situation with the nurses.

1.10. Not providing the necessary dialogue to consolidate the public to conduct health care reform.

1.11. Established general atmosphere of negativity and distrust of the intentions announced a radical reform in health care.

2. What we can do?

2.1.Za management system of health care.

2.1.1. To perform a preliminary analysis of the effectiveness of the work of the entire health system and on the basis of the results to proceed with reform, covering the entire system.

2.1.2. It is necessary to revise the legal framework that determines the behavior of the entire health system - the management of the health system and health insurance.

2.1.3. Health care reform should be conducted based on a broad and comprehensive computerization of activities in health care. Implementation of the approved program for computerization of health to become a strategic priority for all departments of the healthcare system by providing public monitoring of its implementation. To submit periodic information about its performance in the National Council for Tripartite Cooperation.

2.1.4. To analyze and evaluate the effectiveness of the management system of health care that is financed by the Ministry of Health:

its functions should provide only the obligations of the state in ensuring the constitutional rights of the population, governance, public oversight and international commitments;
to develop and implement criteria and indicators for performing periodic objective analysis, evaluation of performance, contribution to the overall efficiency and performance of the health system.
to implement a system for continuous monitoring of the behavior of the health system.

2.1.5. To develop long-term investment policy to ensure realization of the objectives of health reform. The program to determine priorities for implementation of investment policy, funding sources, its consistency over time and the effect is expected.

2.1.6. To take urgent and immediate measures to stabilize and develop the potential of medical professionals needed for successful reform and maintaining the system.

We offer:
to develop long-term national program to provide the necessary medical staff (for 5-10 years).
to mobilize and redirect financial resources from other programs, incl.Operational Programme "Human Resources" for training graduate doctors, emergency paramedics, nurses, attendants, managers of health institutions - hospitals, medical centers and others.

2.2. For health insurance system.

2.2.1. To review the application of basic management principles of the NHS. Management of National Health Insurance Fund must comply with the public nature of the institution, maintain and develop the principle of solidarity. This requires a genuine tripartite management of the health system that meets the real contribution of the parties in the financing of the system. The main priority in the management system to protect the interests and guaranteeing the rights of insured persons.

2.2.2. It is the budget of NHIF be separated from the general budget of the country. To stop the practice of contributions to be paid in the fiscal reserve as a reserve of health insurance that does not use the real objectives of the social security system. Financial resources management of the fund to be right and responsibility of governing bodies of the frame.

2.2.3. To optimize the structure and staffing of National Health Insurance Fund, its regional presence, based on expansion of its activity of electronization Particular attention should be paid to expanding the capabilities of existing integrated information system, the phased expansion of the use of a database for collecting, systematization, summary, analysis and support for decision making, financing activities, monitoring the activities of contractors.

2.2.4. The state, like all employers, be equal to its obligations in determining the size, scope and procedure for payment of health insurance of persons provides:

health insurance contributions for employees in state institutions to submit monthly expense budgets of the respective departments. In the same delay be sanctioned in the same manner as all other employers;
working on service relationships to import personal health monthly contributions received on behalf of their salary. For the purpose of these employees to increase compensation in order not to reduce their income, after payment of contributions;
amount of health insurance contributions, which makes the state for its insured persons - pensioners, children, students, unemployed mothers and others. to have real value and be at least equal to the average, which is made by entrepreneurs. This venture is contingent, who is dedicating approximately 60 percent of the expenditures.

2.2.5. To develop a set of measures - legislative, economic, social and psychological information with which to change the approach to those who do not health insurance. Creating a system for carrying out continuous monitoring of health care contributions.

We offer:
creating a permanent record of the subject of health insurance for individuals and regions throughout the country, allowing the functional differentiation of contributions.

preparation of periodic analysis of the number, age structure and regional location of persons who do not make contributions - monthly and annual incl. and financial flows holders. Submitted for discussion at the National Council for Tripartite Cooperation (NCTC).

activation of the territorial units of the National Revenue Agency (NRA), National Insurance Institute (NII) and the Ministry of Health (MoH) for revealing the causes and implementation of measures to influence those who do not or delay making contributions.

Ministry of Health and the Ministry of Labor and Social Policy (MLSP) in conjunction with the NRA, NII and BIA to develop a package of projects for regulatory decisions (laws and / or legislation) to regulate the actions against persons who are defaulting to health insurance and institutions in their healthcare.
To change the recovery mode of participation in the health insurance system in order to create greater equity and consistency between the timing and amount of contributions made and the use of social security rights.
To introduce a regime in which, in health care facilities and hospitals persons that have health insurance has to be served after the insured. This should be done only after medical assessment of the urgency and potential risk to the lives of individuals.

2.2.6. To public discussion on the problems and prospects of development of the health system involving all stakeholders. Society to get the answers:
How to use the funds now, including the reserve available to NHIF?

What real money is needed between the NHIF to reform the system?

What is the amount of funds needed to support the reformed system?

What is the effect of using the funds for the health care system - consumers, the medical profession to changes in equipment, machinery and equipment of hospitals, the introduction of modern technologies and methods of treatment.

2.2.7. To create conditions for achieving social consensus before the reform on important issues such as:
Is there an alternative model for the proposed reform in health insurance or have to seek other solutions?

How to ensure financial sustainability of the health system in the next decade?

What are the risks (economic, political, social and psychological) to the forthcoming health care reform?

How to ensure sustainability of the health system to the challenges of time?

When you reach the quality of medical care, adequate to the requirements of the European Union?

2.2.8. To establish a system of continuous monitoring of the regularity of the receipt of contributions and transfers, as well as size and structure of expenditure.

2.2.9. To ensure transparency in the health system, stating the time and periodic problems in financing and operation of the health system. Be imported periodically NCTC analysis and information on healthcare costs of various groups of insured persons, the priorities and problems in medical care and outcomes.

2.2.10. Activities in project management for absorption of EU programs to autsorstva the ministry in order to overcome delays and admitted to allow for timely and effective use of funds for health care needs. To establish a system for monitoring the implementation of projects.

2.2.11. To build an effective network of emergency services with complete infrastructure. Then proceed to the restructuring of hospitals.

02/02/12. Be a political solution to the problems of privatization in health care.This problem should be seen as an integral part of the overall package of decisions and initiatives of health care reform. Emphasis is privatization of health care activities rather than its assets - land, buildings, etc.. To identify priorities in this work to outline the sequence of actions and to identify the forms of privatization.

2.2.13. To address the status of hospitals. The package of measures to reform the system to include legislative and regulatory solutions to improve the freedom and autonomy of hospitals and other hospitals in terms of financing and provision of investment. To enable the hospital alone to contract directly with health insurance, be able to participate in determining the price of services they offer.

2.2.14. To provide for the participation of business representatives in the management of health institutions - the boards to include experienced businesspeople, bankers, financiers, rather than persons appointed by the party or any other principle.

3. Objectives of the proposed action:

3.1. To improve the financial position and to increase the efficiency of the functioning of the health care system.

3.2. To create conditions for achieving the quality of health services, corresponding to European standards.

3.3. To ensure greater fairness, equality and accessibility of insured persons to quality medical care.

3.4. To provide and ensure transparency and public awareness of the condition, behavior and performance of the health system.

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Last positions From the category

Position on the proposed version of “MEET THE AMENDMENT OF THE LAW ON PROTECTION OF COMPETITION” GENERAL OPINION ON DRAFT LAW ON AMENDMENTS TO THE LAW ON HIGHER EDUCATION About the extension of the mandate of NCTC On changes in the minimum wage and pensions BIA demand a postponement for THE ADOPTION OF NEW LAW ON WASTE MANAGEMENT

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