Talks between the Greek government and the “quartet” of institutional creditors on the thorny issue of pension reform have recorded convergences but also remaining differences, with one report citing that a “national pension” of 384 euros for 20 years of social insurance contributions is nearly finalized.
Talks between the Greek government and the “quartet” of institutional creditors on the thorny issue of pension reform have recorded convergences but also remaining differences, with one report citing that a “national pension” of 384 euros for 20 years of social insurance contributions is nearly finalized.
That figure will reportedly drop to 345.6 euros for 15 years of contributions.
Both sides, however, are still at odds over the percentage of recoupment for pensions, with the government insisting on protection of low wage-earners – and future low pension brackets – whereas creditors, especially the IMF, want the percentage of increases for monthly pensions to be based on the level of additional contributions.
A ceiling on the amount of monthly pension income – regardless of the number or type of social security payments – will be 3,088 euros (gross), as opposed to 3,680 euros today. A single pension will top off at 2,304 euros from 2,773 euros today.
Additionally, the total sum of joint supplementary and primary pensions will be topped off at 1,400 euros, which would mean reductions in auxiliary payments if over that figure. Moreover, cuts in 120,000 supplementary pensions are foreseen. According to a table published by “N” last Tuesday, 186,333 supplementary pensions alone are recorded by a relevant fund for auxiliary retirement benefits – monthly pensions ranging from 400 euros to 2,500 euros (the figure before memorandum-mandated cuts).
The government has also wanted to raise monthly contributions by 1.5 percent for supplementary pensions, with two-thirds of the hike coming out of employers’ pockets, and the remaining one-third of the increase from wage-earners' salaries. The proposed measure, however, was opposed by creditors, particularly by the IMF.