A fairer distribution and significant increases in pensioners’ benefits over the next five years, as promised by the pension reform presented yesterday by Labor Minister Marinos Mousiouttas to the members of the Labor Advisory Council. Appearing as a guest on the Alpha Summer program, Mr. Mousiouttas explained that the new formula for calculating pensions will take into account both the amount of contributions and the contribution period.
“If someone worked for ten years, stopped working for ten years, and then worked again for another ten years, their situation won’t be the same as someone who worked for twenty consecutive years. It’s the same as if one person contributed 1,000 euros and another 5,000 euros. However, the emphasis is on the number of years, to support current retirees.”
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The Minister of Labor clarified that the government does not intend to abolish the low-pensioner allowance. However, since all pensions will increase, the so-called “small check” will be reduced for those covered by the higher pension.
“Under no circumstances will there be a retiree who, as a result of the reform and the ‘small check,’ will receive less than they did before the reform. For example, if someone was receiving a total of €730, they will receive €830. Depending on how much you receive and the additional amount, you’ll fall into the corresponding category of the low-pensioner allowance.”
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The provisions in the proposed bill concerning retirees who are also recipients of financial assistance follow the same line of reasoning. If, after taking into account a retiree’s income, real estate, and bank deposits, is determined by the Deputy Ministry of Social Welfare to be eligible for benefits, then they will receive them.
“No one—to put it bluntly—will receive even a single cent more.”
Based on data cited by Mr. Mousiouttas, the highest pension from the Social Insurance Fund last year was received by two citizens and amounted to €3,050, while a large number receive a high pension of €2,500.
“They will receive an increase, but it will be much smaller in terms of amount.”
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