These are the 11 pension reductions

21 September 2016
166 Views

Despite the pensioner’s patience, IKA’s deficit is doubled by the reduction of Government Funding. The administration of the Social Security Foundation (IKA) revealed that the deficit will be 2.1 Billion Euros for 2016, from 950 millions last year.

Supplementary pensions will be greatly affected, EKAS allowance will be abolished, deduct contributions will be increased and another 8 wounds for pensioners have been making their life more difficult, since the Katrougalos’ law had been applied.

At the end of the month the situation will get even harder because the withholding of retroactive cuts will begin gradually.
As a result, the Social Security Foundation (IKA) is expected to seek approval for additional funding from the Social Security Capital for the Solidarity of Generations (AKAGE) reserves to cover part of its constantly growing deficit.

Despite the positive course of its revenues, the deficit of the country’s biggest social security fund, which is likely to form the backbone of the planned National Social Security Entity (EFKA), is expected to reach 2.1 billion euros.

To cover that deficit and pay monthly pensions in time, IKA’s management only has limited options. These are halting payments to third parties for which it collects revenues, such as the EOPYY healthcare service organization, additional financing from the state budget, and recourse to AKAGE. It appears that IKA will use all three of those instruments to make sure that pensions are paid out without any problems in the last few months of the year.

Social security experts say that another available tool is further postponing the times when definitive decisions are issued on the pensions of the 140,000 retirees waiting up to three years to finally get their pensions.

The pensioners’s Network reveals the 11 new cuts at the pensions
1. 250.000 pensioners will see their pensions cut up to 50% . Total losses for ancillary pensions will reach 76%.
2. 158,000 pensioners who were receiving the supplementary solidarity pension (EKAS) don’t qualify for EKAS and saw their total pensions cut in half
3. 285.000 pensioners of the Public Sector will see their pensions cut until 60%. The dividends of July, August and September of 2016 will be paid on the 30th of November and the dividends of October, November and December will be paid until the end of the year.
4. 35% pension reduction will be applied to 150.000 new pensioners, who submitted their request from May 13th 2016 and on
5. The “ceiling” of 2.000 Euros for an individual pension and 3.000 for a sum of main and supplementary pensions is imposed from October
6. Readjustments in widowhood pensions for the ones applied after the 12th of May.
7. When a pensioners is still working, then the main and supplementary pension will be cut by 60%.
8. Reductions to their pensions will see the ones who dare to retire earlier.
9. One-off payments have started and will be distributed with a 15%-18% reduction.
10. Reductions will be appealed in pre-pension provisions of 11.000 pensioners of Emporiki Bank, former Pisteos Bank and Attica Bank.
11. Contributions: There will be a beholding of 6% for illness pensions. These reductions regard of main and supplementary pensions.

You may be interested

Greece not in top 20 European destinations with highest rates of increase in arrivals for 2017
GREECE
shares25 views
GREECE
shares25 views

Greece not in top 20 European destinations with highest rates of increase in arrivals for 2017

Panos - Jan 19, 2018

Greece is absent from the list of top 20 destinations in Europe with the highest rate of increase in visitor…

“Athens is one of the last cities in Europe that can still be old, weird & chaotic”
GREECE
shares35 views
GREECE
shares35 views

“Athens is one of the last cities in Europe that can still be old, weird & chaotic”

Panos - Jan 19, 2018

At a time when the mainstream narrative is all about how Greece’s ‘best and brightest’ minds have been fleeing the…

Greek housing market still in decline
FINANCE
shares37 views
FINANCE
shares37 views

Greek housing market still in decline

Panos - Jan 19, 2018

2017 has not been a good year for Greece's housing market. In the third quarter of the year, property prices…

Leave a Comment

Your email address will not be published.