Greece’s Ministry of Labor is planning more changes to the existing pension system in the autumn, through a new bill focusing on six key categories, according to Ta Nea.
The government highlights that there will be no changes to the retirement age until 2027.
The measures will focus on changes to: solidarity contributions for pensioners, the 15-year minimum to obtain a supplementary pension, terms related to the current widow/widowers pension and pensions for those on disability.
It also plans to consolidate social benefits and in-kind provisions related to Greece’s largest social security organization EFKA, and will introduce a new formula to calculate pensions.
Solidarity Contributions
The article at Ta Nea reveals that solidarity contributions will kick-in from the new minimum threshold of 1,400 euros, as opposed to the first euro. The calculation of contributions and the various levels will be reformed.
15-Year Minimum for Supplementary Pension
Pensioners that don’t fulfill the requirements for a supplemental pension will be able to purchase the ‘missing’ years. The measure is expected to affect 24,000 self-employed and freelancers.
In order to be eligible, pensioners must have completed 3,600 days of actual insurance and the purchase price will be based on the insured’s earnings before retirement.
Widow’s and Widower’s Pension
The Ministry is still considering how to mitigate the impact of cuts in widow and widowers’ pensions, says Ta Nea.
Some things being considered involve beneficiaries losing half of their benefits after three years if they take up employment or retire.
Moreover, the Ministry is considering letting the beneficiary choose which pension will be cut by 50% after three years and also whether or not the cut should apply only to the national pension as opposed to the proportional pension.
Disability Pension
The previous bill on pensions had a gap that needs to be corrected, according to Ta Nea. The new proposal says that pensioners who wish to work will no longer have to stop working and be re-employed to receive their disability pension, as is currently required.
EFKA Benefit
This benefit will be consolidated.
New Method of Calculating Pensions
Pensions will no longer depend on earnings adjusted for inflation but will be calculated in accordance with the increase of the wage index of all workers. For example, if the wage index goes up 3.5% in 2024, so will the salary considered for the contributory pension for those retiring in 2025.
The existing system will end this year and, from 2025, pensions will use the new wage change index, which is currently being created by the National Statistic Service of Greece (ELSTAT) and the Ministry of Labor.
