By S. Papapetros
[email protected]
A revised method for calculating new pensions in Greece, based on the consumer's price index, is expected to cut monthly benefits by 20 percent, on average.
The revision is included in a new circular issued by the labor and social insurances ministry, which is mandated by a law passed in 2016 under then minister Giorgos Katrougalos and the rest of the leftist Greek government.
Based on the provisions included in the circular, annual readjustments in income calculated for a future pension rate as well as annual replacement rates will determine the level of social security benefits.
The publication of the circular on Thursday unblocks the process to issue up to 60,000 new primary pensions -- which have been pending for months -- albeit at lower rates than previously issued pensions for beneficiaries with roughly the same characteristics: fund, years of employment, age etc. The circular has a retroactive effect on the individuals who had filed for social security but had not been issued due to the pending application of the bill, the so-called Katrougalos law, which was ratified by a slim Parliament majority last May.
