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Eight points in the new pension reform

16 March 2010 / 16:03:59  GRReporter
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The goal is to increase the retirement age, which is now 61.3 years, by two years by the end of 2015, announced Minister for Employment Andreas Loverdos. Today ends the social dialogue on the reform of the pension system, with the last meeting of experts, who will propose changes. 

Among them is the putting a maximum € 2 800 pension per month, which was voted by parliament some time ago, but has not been applied. This has as a consequence, many pensioners who have worked on jobs in government offices such as judges or in banks to get much higher pensions than € 2 800. 

The government's decision to change the method of calculation of pensions and to increase the retirement age was a pre-announced also in the report on the progress of the stability and development program, which was sent to the European Commission, reported Ta Nea newspaper. The eight major changes with which the Government will proceed are as follows: 

1) Change the way pensions are calculated. By 2018 there will be a basic pension of €360 for all and one analogical, which will be won by every single worker with years of experience. 

2) From 2018 the maximum pension for all will be € 2 800. Right now there are pension funds which pay pensions ranging from €4500-€5000. 

3) From 2013 the gradual equalization of the age limits between men and women to begin in the public retirement sector. This does not apply to women who have already secured their rights to retirement. 

4) Increase of retirement age by 2013 in the private sector, state companies and banks. 

5) Discouragement of early retirement and the imposition of punishment in public and private sectors amounting for 6 percent per year pension reduction, which can reach 30% pension reduction in the event of retirement five years before the statutory age. 

6) Planned is the establishment of a committee to decide a common list for the heavy and unhealthy occupations in public and private sectors. The retirement age of workers in private sector, whose jobs are removed from the list, will be increased with 5 to 7 years. 

7) The restrictions, which apply from 1999 to working retirees in the private sector, will be introduced for working retirees in the public sector as well – i.e. their pension can be reduced. 

8) An alliance of 13 pension funds into three in 2018 with the homogenization conditions for retirement, which will be introduced with the implementation of the new system. 

Today representatives of the Ministry of Labor will attend the presentation of the new system for electronic prescribing, which is related to the pension fund IKA and from March 1 the pilot project will be applied in Larissa and Lamia.

Tags: Greece Economy retirement pension
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