Now, Look Here (Publicistics) — Part Three

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Status: Finished  |  Genre: Non-Fiction  |  House: We, The Silly People

Chapter 23 (v.1) - Could one cope with it?!

Submitted: May 06, 2018

Reads: 19

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Submitted: May 06, 2018

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COULD ONE COPE WITH IT?!*


According to the recent decisions on the front of social insurance everybody who pays alone his insurance (and he almost always pays alone his due payments there for the simple reason that can not find employer who will pay him salary and insurance payments), must pay at least 32% if he wants only to receive after the necessary time pension. Payments to insurance that cover also sick days and maternity leave come to about 35%, which, plus another 6% for medical care make 41% of one minimal monthly salary (MMS), but as far as the relevant authorities don't allow the people to insure themselves on lesser basis than 2 MMS, then it turns out that each self-insuring person (was he individual entrepreneur, artisan, artist, commercial agent, etc.) must pay every month at least 82% of MMS.
Till here everything is good, where we will not discuss now is this much or not (or for whom is it much and for whom is a little) but will only mention that since we come under the aegis of the Board our living standard stopped to fall down, but it also does not rise up, i.e. occurred the normal for every stable society stagnation). This means that if the inflation stays about 5% in an year, then so much will be also the basic interest rate (BIR), and if one puts today on a deposit, for example, 100 lv then after 15 years he will have approximately 200 lv, but in their purchasing power they will be equal to the former 100 levs. In the same time, if one receives today income of 100 lv in a month then after the same 15 years for the same work he will receive already 200 lv per month, and together with his incomes will grow synchronously also MMS. In other words, if we express everything in MMS (how it is done in the world, as also in Bulgaria under the totalitarianism) there will be no changing.
On the other hand, in all normal countries the average amount of pensions and student scholarships moves somewhere around 70% of MMS (in wider limits between 65 and 75%, yet never outside 60-80% of MMS; well, for the pensions it can happen that some receive more than one MMS, when their salary is bigger, but then the percentage of pension also falls down, so that this is not significantly higher and this is not a frequent thing, neither it is correct, and there must be taken also taxes, and the sums are rarely actualized, and after all — the pensions are not for wealthy people, they are for the poor and average citizens). There are only few those who think that we are normal country now, one decent percent thinks that earlier we were such one, but hardly somebody doubts that in the future we must become such country. This future is very relative and some say after about a decade, where some others come even to half a century, but one acceptable variant is, say, 20 years.
So then it turns out that those, who now pay alone their insurance payments, giving each month 82% of MMS, will after 15-20, or 25, years receive pensions of 70% MMS (because then 1 MMS will not be equal to 2 MMS)! Possibly our rulers think that our people are to such extent "mere water", that can't do even such elementary calculations. It can be so for the most of people, but at least the author of this correspondence has done them. And mark, please, that the today's amount of payments in the insurance exceeds this, what people will receive after a time (speaking on the average), even on the basis of one to one, i.e. one year work for one year pension! Only that, in accordance with the new pension law, one must have approximately 40 years length of service in order to be able to retire on due time (i.e. at about 60 years), and by our statistical average life span lower than 70 years (for the men is even 67.6, according to the latest data), he has average chances to receive this pension about 5 (five) years (if he retires in age of 63)! Even if we accept that our future will be again bright (as the communist have convinced us before), then the average pensioner has no chances, after the corresponding 20 years, when his time comes, to receive his pension more then 10 years, at the maximum. In other words, the overpaying of payments in the social insurance in the moment is, in numbers and words, at least 5 (five) times.
In this case quite naturally arises the question ... (see the title).

March 2000

 

 


 

 

  • * I have sent this to a pair of newspapers, but with no response.

 


 


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