BULGARIA - Retirement savings in second and third pillar pension plans for over 3.2 million Bulgarians have now reached BGN1.85bn (€946m).

This 22% increase from year-end 2006 points to a far stronger growth than last year when pension fund assets climbed 13% in the first half.

The mandatory second pillar - itself divided into general and 'professional' pension funds - makes up around BGN1.35bn, according to figures released by the Bulgarian supervisory commission.

Membership in the non-state retirement system has increased to 3.25 million people from 3.09 million in December 2006.

Pension fund contributions also now make up 11% of Bulgarian household assets compared to 7% in 2006 and 2% in 2000 when the pension reform was introduced.

Among all pension funds, the trend towards a lower exposure to government securities continues. The most pronounced decline could be seen among occupational pension funds which had 40% of their assets in government securities at the end of last year. This share has now fallen below 30%.

At the same time, funds' investment overseas is increasing slowly with 'professional' funds having almost 8% of their assets invested outside Bulgaria, while general funds have almost 9% invested abroad and voluntary funds over 11%. At year end 2006, these figures were  7%, 8% and 10% respectively.