The State Fund for Guaranteeing the Stability of the State Pension System (SFGSSPS) has been established pursuant to the Transitional and Final Provisions of the 2006 State Budget of the Republic of Bulgaria Law. At the end of 2008 the National Assembly (NA) adopted a Law on SFGSSPS and its implementation is assigned to the Minister of Finance.
The Fund's objective is to foster and guarantee the sustainability of the state pension system. This is achieved through allocation of certain additional or extra revenues from the state budget for a period not less than 10 years. These funds are to be invested in order to ensure additional resources for the Pensions Fund. The resources of the Fund are an independently separated part of the central budget and respectively part of fiscal reserve. The proceeds in the Fund are regulated with the Transitional and Final Provisions (TFP) of the State Budget Law for every year, Decrees of the Council of Ministers (DCM), resolutions of the NA and the Law on SFGSSPS (Article 11).
The Ministry of Finance publishes on a monthly basis data on the changes in the cash flows on the Fund's account with the BNB on its website minfin.bg, banner SFGSSPS, Statistical Data, Reporting data on the Silver Fund.
In pursuance of § 16 TFP of the 2007 State Budget of the Republic of Bulgaria Act and Article 124 of DCM 20/02.02.2007 the Ministry of Finance made a transfer from the central budget to the Silver Fund representing 25 per cent of the proceeds from privatisation of state enterprises for 2006 and 50 per cent of the savings of expenditure under the executive budget for year 2006.
Under the provisions of § 17, paragraph 3 of the TFP of the 2008 State Budget of the Republic of Bulgaria Act and item 3 of NA Resolution of 29.11.2007 on approval of additional budget appropriations under the 2007 executive budget the following components are included in the transfer of the Fund's resources:
- 50 per cent of the savings of expenditure under the executive budget for year 2007, determined as the difference between the amounts planned and the amounts reported under the parameters of Article 1, paragraph 2, section II of the 2007 State Budget of the Republic of Bulgaria Act;
- 25 per cent of the receipts from privatisation, as reported in the executive budget for year 2007;
- the excess over the 3 per cent of GDP surplus under the consolidated fiscal programme for 2007 reported as at 31.12.2007.
On 22.07.2008, the last amendments to the Privatisation and Post-privatisation Control Law (PPCL) entered into force. 90 per cent of the money proceeds from the privatisation of the state-owned participating interest in the capital of any commercial corporations, as well as of self-contained parts of the property of any wholly state-owned commercial corporations and 90 per cent of the money proceeds from any damages charged on any obligations assumed but unfulfilled, as included in the contracts for privatisation are transferred to the Fund on an on-going basis.
Pursuant to the provisions of Article 11 of the Law on SFGSSPS, § 17, paragraph 3 of the TFP of the 2009 State Budget of the Republic of Bulgaria Law and Article 44 of Council of Ministers Decree 27/2009 on the implementation of the 2009 State Budget of the Republic of Bulgaria (DCM No 27 of 2009) with a deadline by 31 May 2009 the following components were included in the transfer of the Fund's resources:
- 25 per cent of the surplus reported in the 2008 executive budget;
- 90 per cent of the reported in the 2008 executive budget proceeds from privatisation, decreased by the amount of the deductions for the Fund pursuant to Article 8, paragraph 1, item 1 of the PPCL.
- revenues from concessions reported in the executive budget including the revenues reported in central budget for 2008 and under the Ministry of Finance budget from 18 November to 31 December 2008.
In 2009 receipts from privatisation were deducted in favour of SFGSSPS on an on-going basis pursuant to Article 8, paragraph 1, item 1 of PPCL.
In 2010, under Article 11, paragraph 1, item 1 of the Law on SFGSSPS and § 73 of the TFP of the 2010 State Budget of the Republic of Bulgaria Law funds representing revenues from concessions reported in the executive budget for 2009 and receipts from privatisation under the amendments to Article 8, paragraph 1 of PPCL (as amended SG No 99/2009) were transferred.
For the period form 2011 to 2014, pursuant to the provisions of Article 11 of the Law on SFGSSPS the following components were included in the transfer to the Fund's account:
- privatisation proceeds reported in the executive budget for the previous year;
- revenues from concessions reported in the executive budget for the previous year;
- revenues from other sources determined by law or an act of the Council of Ministers - fines and penalties relative to the privatisation process under Article 8, paragraph 8 (2) of PPCL.
The entering into force of the Law on SFGSSPS provides for the Fund to be managed by a Management Board (MB) comprising a Chairperson and 8 members. The Minister of Finance is the Chairperson, and the Minister of Labour and Social Policy is the Deputy Chairperson of the MB. They participate by title in the Management Board. The members of the MB are appointed and dismissed by a decision of the Council of Ministers. Members must meet the statutory requirements in respect of education and professional experience. The CM determines also the costs for the remuneration of the Fund's MB.
The members of the Fund's MB have been appointed by CM Decision No 416 of 2010, as amended by CM Decisions Nos 729 and 843 of 2010, CM Decision No 891 of 2011, CM Decision No 1012 of 2012, CM Decision No 797 of 2013 and CM Descision No 821 of 2014.