Government considers “contribution penalty” to curb early pensions
Athens has made a counter-proposal for early pensions, as the International Monetary Fund, European Central Bank and…
Athens has made a counter-proposal for early pensions, as the International Monetary Fund, European Central Bank and European Commission demand the immediate abolition of 100,000 early pensions in 2015.
According to the Greek proposal, pensioners who retire early will have to pay contributions for the remaining working years up to age of 62. In essence this “contribution penalty” will make early pensions pointless, given ha they are typically reduced.
This solution would burden the pensioner and would avert others from seeking an early retirement. With the pensioner being liable for both his and his employer’s contributions, the early pension could, in some cases, be slashed by up to 27%.
Another plan proposed by the Greek government is to introduce a transition phase for early retirements up to 2025.
A report in Ta Nea argued that the only aspect of the pension system that the Greek government is currently debating with its creditors is early pensions.
The government has declared that it will not accept any pension cuts and has objected to the implementation of the ‘zero deficit’ clause for supplementary pensions that was voted in by the previous government, as they would result in considerable reduction of such pensions.
Stratoulis disputes proposal
From the stand in Parliament, Alternate Minister of Social Insurance Dimitris Stratoulis stressed that he contacted the Prime Minister and denied such a proposal. He claimed that the Greek side has not made the proposal and as such, these scenarios «are of no interest».