Professor Savvas Rompolis has underlined the need to re-examine the replacement rates, insurance contributions and other aspects of the upcoming pension system reform, in a Tuesday morning interview on Mega Channel.
According to Mr. Rompolis, there is “room for improvement” in the Greek government’s proposal and warned that there if left as is, the new system may encourage an explosion of undeclared work. Present plans indicate that an employee’s contributions between the 25th and 35th year of insurance will not essentially benefit the pensioner.
On his behalf, former Labor Minister Giorgos Koutroumanis reported a spike in retirement applications from both the private and public sector, in anticipation of the upcoming pension system reform. Given that the reform will come into effect when it is published in the government gazette, many have sought to take advantage of existing provisions. Mr. Koutroumanis added however that the reform may retroactively come into effect as of the 1st of January 2016.
