The new government will have to introduce new pension cuts by the end of October that will come into effect as of the 1st of January 2016, in compliance with the bailout agreement.
The legislative initiatives aim to associate contributions with benefits, while streamlining the different pension systems, expanding the contribution and pension base for the self-employed and working towards the unification of pension funds. The cuts in main pensions are expected to come from the unification of the funds.
Meanwhile, by the end of October, the government will have to abolish all unnecessary charges in financing pensions, increase OGA pensions for the uninsured, gradually abolish the EKAS solidarity benefit and introduce a 10% penalty on early retirements. The government will also have to determine and introduce alternatives to offset the effects of a 2012 State Council decision regarding pension measures.
Furthermore, the government will have to improve its efforts in collecting debts related to pension contributions, as well as stricter measures to recover debts from defaulting debtors.
