In a meeting lasting more than four and a half hours, the Labor Advisory Council convened for the first time since the submission of the preliminary draft of the pension amendment bill. The discussion is now continuing in depth and based on specific data.
“We had a lively discussion. Questions were raised, clarifications were sought, and perhaps some suggestions were made toward the end.”
Marinos Mousiouttas – Minister of Labor
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Every Monday and Thursday, the agenda for the parties involved will include a meeting of the Labor Advisory Council. Meanwhile, every Tuesday, the Technical Committee—which specifically addresses the Welfare Funds—will convene.
SEE ALSO: Pension reform in deep waters: The 12%, the “red lines” for contributions, and the “loophole” for increases
Starting this Monday at 4:30 p.m., barring any unforeseen circumstances, the House will continue its debate on Pillar 0, and on Thursday it will focus on the 12% actuarial reduction. A provision in which the bill proposes a reduction to 7.5% only on the base portion of the pension and not on the entire pension, as is currently the case.
At the same time, after five years of implementation, if someone wishes to retire at age 63, they must have completed at least 38 years of service, instead of the current 33.
The “Loopholes”
The partners have identified two not-so-negligible issues and are seeking clarification from the government. The first concerns the possibility of future contribution increases.
“The bill includes a provision stating that an actuarial study will be conducted in 2030–2031, which will determine whether sustainability is ensured without any contribution increases, leaving this possibility open.”
Michalis Antoniou – General Director of the OEB
SEE ALSO: Pensions: Double weekly sessions “finalized”; January 1 remains the firm target
The second issue, also concerning the future, is pension cuts; despite assurances that pensions will not be reduced, the bill leaves this possibility open as well.
“We must create conditions that ensure adequate pensions for current and future retirees, and establish conditions and prerequisites so that there is no risk of a reduction in pension benefits.”
Andreas Matsas – General Secretary of SEK
Pillar “0”
The meeting began with the technical committee on Pillar 0, which covers low-income pensioners and social assistance.
Based on what was explained to them, the unions make it clear that the reform will keep tens of thousands of retirees below the poverty line.
“We are deeply concerned by the fact that the plan, as proposed, essentially disregards the poverty line. The poverty line is €1,018; the proposal is €900.”
Sotiroula Charalambous – General Secretary of PEO
“It must be made clear what the adequacy of pensions should be today, but also what the adequacy of pensions should be for future generations, so that proper provisions can be made.”
Stelios Christodoulou – President of DEOK
“We have once again raised the issue of workers who are required to retire before the age of 63, such as police officers, firefighters, and military personnel. We believe they have no choice, so it is unfair to impose penalties on them.”
Stratis Matthaiou – General Secretary of PASYDY
According to the Minister, the goal remains to submit the bill on September 24.
“The timeframe that has been set is an optimistic scenario. However, we will strive to meet it, while also heeding the anxiety of our fellow citizens regarding this long-awaited reform.”
Filokypros Rousounidis – Secretary General of KEVE
So far, the government has avoided taking a position on how much the pension reform will cost.
Watch Kleio Vourkou’s report:
