PIOM Fund denies claims of insolvency, guarantees pension payments

The PIOM Fund has issued a public statement denying reports that its director, Nikola Memov, claimed the fund would be unable to sustain itself. The fund clarified that pension payments remain secure and are distributed regularly on the first of every month.

According to the fund, the state acts as a direct guarantor, with legal provisions in the Law on Pension and Disability Insurance requiring the state budget to cover any systemic deficits. This mechanism was established during the 2005 reforms when the second pension pillar was created.

Management noted that they have identified long-standing systemic anomalies, such as unpaid contributions and irregularities in pension determination. A detailed analysis of these issues is currently being discussed with the Ministry of Social Policy, Demography and Youth. Furthermore, international institutions including the International Monetary Fund and the World Bank have highlighted the necessity of pension system reforms, a trend observed across many EU member states.