The Center of Planning and Economic Research (KEPE) has published a study regarding the changes that the Ministry of Labor has promised the troika it will introduce in September and implement in January 2015.
Previous attempts to address the country’s ailing insurance system have had little effect in streamlining the legislative framework and curbing expenses, resulting in a rather problematic and fragmented system.
The “central philosophy” of the new system is to ensure that it can cover its own needs without the need for contributions from the State budget, which hints towards a complete overhaul of the existing system.
Amongst the bolder aspects of the new system are the unification of funds and the abolition of all early retirement schemes, which will result in an immediate increase of retirement age and abolition of favorable provisions for mothers with underage children.
The central government is working towards establishing three main insurance funds with universal insurance terms for everyone. This will also necessitate the introduction of universal contributions from the public and private sector alike.
KEPE’s full report (in Greek) is available here.
