Pension reforms expected to affect about 3,000,000 employees

The pension reforms being planned by the government are expected to affect about 3,000,000 employees, as well as those…

The pension reforms being planned by the government are expected to affect about 3,000,000 employees, as well as those who have huge pensions. Amongst the changes being developed are introducing common rules in calculating pensions and contributions, unifying the main and supplementary pension funds, reducing huge pensions.

According to a report in the Ethnos newspaper, these changes will affect those with pension policies taken out after 1993, due to the introduction of a lower replacement rate. The employees will have their pension calculated based on their contributions and years of being insured. This essentially results in a lower replacement rate and therefore, a lower pension.

Furthermore, the “committee of wise men” has proposed the acceleration of equalizing contribution payments amongst all employee categories, as well as revising the contribution payments of self-employment pension fund OAEE, by associating the contributions with the declared income.

In order to increase their income, perspective pensioners may turn to occupational pension funds and secure a third pension (aside from the main and supplementary ones) by paying additional contributions. Finally, the government in considering introducing a 6% to 8% special contribution on high pensions, in order to cover the huge pension fund deficits.

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