A “tough” scenario of the Ministry of Labour and Social Security regarding the restraint of costs in the insurance system include the resetting of a cap on pensions below €2,773 currently, the inclusion of family allowance, immediate reducing of benefits to ineligible pensioners and possible claims of higher benefits paid already.
The measure has to do with the 40% of pensioners of the former special funds, SOEs and banks, who receive higher pensions, due to a different interpretation of a 1992 law. Pensioners who retired opted for voluntary retirement would be hit by the new measure.
Regarding main pensions, there are scenarios for imposing of a new cap at €2,500 or even €2,200. It is considered certain the inclusion of family allowances to the cap, provided by the medium-term package, according to sources.
Under the plan, there would be no pensioner, receiving main and supplementary pensions and allowances totalling more than €3,650, while the state threatens to claim the illegally granted pensions to thousands of pensioners, if there is a relevant court decision.
The Labour Ministry is pressed by the country’s international lenders to proceed with bold interventions to reduce the state deficit, considering imposing a cap on supplementary pensions in the forthcoming reform in July.
Public Power Corporation’s insurance fund TAP-PPC had been granting pensions of more than 80% of pensionable earnings or fourfold of average per capita GDP to those who retired.
In 1995, in response to some pensioners, who protest against cap, the Fund decided that the pension cap does not apply when the pension is increased by pensionable service beyond 35 years.
When TAP-PPC joined IKA, the services of the latter found that the cap was not applicable and ordered an investigation.
The fund had been applying the cap for the period 1992-1995, but the board decided on the lifting of the cap, when the pension is increased by pensionable service beyond 35 years.
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