The cuts in main and supplementary pensions that were carried out in 2012 were found to conflict with the Constitution, according to a ruling of the Council of State on Wednesday. The decision affects about 800,000 IKA and public utilities pensioners with pensions were over 1,000 euros per month, who are to see
According to the ruling, the pension cuts did not comply with constitutional provisions regarding pensions, namely that they are meant to allow pensioners a dignified living and participation in social life. Furthermore, the Council argued that a detailed and scientifically-based study is necessary, which takes into account the effect on the living standards of those affects, in order to justify any pension cuts.
While such a development could risk derailing the government, the Council noted that its decision would not have a retroactive effect. This means that affected parties would have to file individual claims to the State Council, to claim back any funds.
Romanias: “Pension restoration will be gradual”
The General Secretary of Social Insurance Giorgos Romanias told Mega Channel on Thursday that the restoration of pensions would be gradual. While the State Council’s decision came into effect on Wednesday, he explained that any pension increases would be according to the budget.
Mr. Romanias revealed that he would meet with pension funds in July, in order to agree upon how to implement this agreement. According to the General Secretary the restoration of pensions will have a cost of about 500 million euros. Both sides have already been in touch and are in agreement on the general direction.
