The pension system reform proposal presented by the Minister of Labor Giorgos Katrougalos was unanimously approved by the Government Council for Social Policy, after convening on Wednesday. Paramount to the plan is the creation of a single fund with uniform rules for all, introduction of a ‘national pension’ as well as the recapitalization of the system.
According to a government statement pensions will be comprised from a tax-funded ‘national pension’ and a proportional pension, which will be determined from the pensioner’s wages (or declared income), a uniform pension replacement rate years of insurance and contributions. Additionally, the government will recapitalize the system by taking advantage of public assets and establishing a uniform system of social resources.
The Labor Minister explained that the national pension will ensure that everyone will receive a pension. Mr. Katrougalos also underlined that the new pension system will provide simple, uniform and transparent rules applicable to everyone and as such will focus on social justice and the protection of the most vulnerable.
The government wants to begin talks on the reform so that a final draft of the bill may be table within December. A government council meeting may be called over the next few days in order to formally approve the bill before submission in Parliament.
Dragasakis and ILO president to discuss reform
The Government Vice President Yannis Dragasakis has arranged to meet with the Director-General of the International Labor Organization Guy Ryder on Thursday. Aside from labor market-related issues, the pension reform will also be discussed. The Greek government insists upon raising pension contributions, against creditor wishes. The institutions, in turn, have raised issues over group dismissals and union law.
