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15 June, 2024
 
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Labour Minister discusses pension relief proposal on SPOR FM

Yannis Panagiotou highlights plan to ease actuarial reduction for long-term workers

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Greek Minister of Labour Yannis Panagiotou addressed the proposal to exempt the basic pension from the actuarial reduction of 12% for employees with 40 years of contributions during an interview with SPOR FM and the show Diaspora News.

Panagiotou emphasized the government's methodical and effective approach to handling open issues while remaining mindful of economic constraints. He highlighted that the proposal aimed to strike a balance between safeguarding the Social Security Fund's sustainability and avoiding increased contributions from employers and employees.

The Minister noted that the 40-year benchmark was crucial, and approximately a quarter of those impacted by the actuarial reduction over the last decade would benefit from the relief. In practical terms, out of the 40,000 workers who retired and experienced an actuarial reduction from 2012 to the present, around 10,000 individuals would see relief, representing about 25% of those affected.

When discussing the percentage increase in pensions for the affected individuals, Panagiotou explained that the relief would result in an average increase of approximately 6% for those affected by the actuarial reduction. This increase would apply to recent retirees who meet the criteria and those who retire before the age of 65.

Panagiotou also discussed the timeline for the proposal, indicating that in the coming weeks, it would become clear whether the proposal had the potential for unanimity and would be assessed in the right direction. If the proposal garners approval, it will proceed to the preparation of a bill, subject to approval by the Council of Ministers and submission to the House of Representatives. However, if the proposal is deemed unacceptable, the current regulations will remain in force.

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