By Stelios Papapetros
The latest proposal by institutional creditors in negotiations with the Greek government calls for the abolition of bereavement allowances for beneficiaries under the age of 57.
The idea, according to reports, was tossed out during contacts with officials of the Greek labor ministry. The reasoning is that such benefits – for widows and widowers – serve as “counter-incentives” for seeking work or remaining in active employment.
Creditors’ representatives (Commission, ECB, ESM, IMF) also maintain that the level of such monthly allowances and benefits in Greece is unduly “generous”, especially in so-called “high-end” pension funds.
Creditors reportedly want bereavement allowances to be granted for a maximum of three years for childless beneficiaries, or, for benefits only for the period when offspring are minors. If attending a higher education institution, such benefits would be extended until an offspring reaches the age of 24, but eliminated thereafter.
Bereavement allowances or benefits in Greece total roughly 402,000, with a monthly cost of 279.5 million euros.
Sources close to the negotiations assess that the Greek side is trying to apply a non-retroactive clause to such a measure, meaning that it would affect only future beneficiaries after implementation.
