The issue of pension funds was raised for the first time in the Labor Advisory Council, and now the government is being called upon to lay its cards on the table, specifically regarding whether it will make participation in the funds mandatory or voluntary.
“Pension funds are a necessary institution that supplements workers’ pensions. What we will try to do is see how this institution can be expanded.”
Marinos Mousiouttas – Minister of Labor
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The points of disagreement between unions and employers are as follows:
Unions are calling for the implementation of mandatory provident funds, while employers want to maintain the voluntary nature of the system.
Employee representatives make it clear that they will not accept any changes to the existing welfare funds that have been established through collective bargaining agreements. Meanwhile, employers explain that if a new measure is decided upon, it must apply to everyone. Key elements of the discussion include the level of benefits, whether contributions will be on a sliding scale or not, whether retirees will receive the amount as a lump sum or in monthly installments, and whether borrowing options will be available.
“In the coming period, we will express our views regarding whether the program should be mandatory, voluntary, or something in between. It could be conditional voluntary. In other words, I’ll make it mandatory; if certain targets aren’t met, I’ll make it mandatory.”
Marinos Mousiouttas – Minister of Labor
Currently, 25% of all employees are enrolled in Provident Funds, and it appears the government is considering providing incentives to employers to expand the program’s coverage.
The Minister explains that both sides have understood that, once established, their representatives will not be able to serve on the supervisory authority; however, they will be able to play an advisory role through a body that will be created.
Also under consideration…
The bill on the Social Security Fund—the one that will also provide for pension increases—is still under review by the legal department. Approval by the cabinet and debate in Parliament are still pending.
Watch the report by Kleio Vourkou:
