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Πέμπτη, 09 Ιουνίου 2016 13:24

First round of supplementary pension cuts at hand

Roughly 220,000 Greek pensioners will face reductions in supplementary monthly benefits of up to 40 percent if the combined total of primary and supplementary social security payments exceeds 1,300 euros a month.

Roughly 220,000 Greek pensioners will face reductions in supplementary monthly benefits of up to 40 percent if the combined total of primary and supplementary social security payments exceeds 1,300 euros a month.

With last month's ratified social security reform package, reductions are also expected in lump sum pension payments still owed to both public and private sector wage earners, roughly 62,000, with the biggest decrease reaching 18 percent.

The latest pension system reforms, passed by a slim majority of MPs from the government coalition, aim to reduce the annual participation of the state budget in covering social security payments and to reduce the percentage of social security outlays as a portion of GDP.

Moreover, 2.6 million beneficiaries will see their primary pensions recalculated, while retired civil servants (roughly 280,000) will witness a reduction in the dividends they receive from a state-run pension fund.