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Pensions and social security discussions

08 December 2009 / 13:12:18  GRReporter
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The government announced the social security negotiation program and we should expect rapid developments this week. Today is the first session of the commission of the “Wise” and next week announced will be changes in ensuring continuity and in the law for labor relations.

The ensuring continuity commission was in session yesterday, in order to decide what changes must be made in the way pensions are calculated (for example, a pensioner will receive his pension from the social security fund, where he was insured for most years), and the period for which the retirement decision will come out – the goal is for this decision to be issued in three months.

During today’s first meeting of experts, in which representatives of government, social partners, the Minister of Employment Andreas Loverdos and his deputy George Kutrumanis will be present, the basic positions of the government pension insurance system will be presented. The decision to form this commission was announced two weeks ago during the first meeting between Minister Loverdos and union representatives, where they agreed also that university representatives should be present as well.

On Thursday the labor relations commission will be in session and it will announce proposals for some hot topics, among which will be the flexible eight hour working day, holidays and “hiring” employees.

The Ministry of Labor management is determined that during the first trimester of 2010 it will bring bills for vote in the National Assembly, which will regulate ensuring continuity and labor relations. At the end of April the government will receive the report by the experts commission regarding the social security system and will start a dialogue, which aims to pass the mentioned law at the beginning of summer.

The government’s big bet is solving the problems with the social security system, which is in a “red” state – this year the funds needed another €2.47 billion. The government will stress on three decisions during the dialogue: finding new sources for financing the system, solving tax evasion problems (which reach €8.3 billion) and limiting healthcare expenses. Structural changes are also expected – uniting all social security funds and setting a common minimum pension and motivating people to work till older age.

Ministers of Economy and Labor will meet this week with representatives of the public employees union, who want to pass measures in support of their social security funds, which have been “storing” 17 000 pension applications.

After the European Court issued a court decision, in the center of the dialogue is also balancing the age limit between men and women in the public sector. The union members are against increasing the retirement age but it is expected that the Ministry of Economy will propose a bill for the gradual increase of this age limit.

Tags: Social security in Greece Retirement
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