The roadmap for reforming the pension system is in full swing, with the Ministry of Labor and the social partners intensifying consultations so that the amendment bill can be brought before the full House of Representatives on September 24. The government’s goal is for the new calculation formula and pension adjustments to take full effect on January 1, 2027.
Read more: Pensions: The “keys” to the reform and who will see increases (INFOGRAPHICS)
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Haris Papatheocharous: A photo with his wife from 2015
Pension reform: Aim is to bring it before the Cabinet soon
The dialogue consists of a frequent schedule of meetings; following the first convening of the Labor Advisory Body and the presentation of the preliminary draft, weekly meetings were established every Monday and Thursday, while the Technical Committee on Pension Funds meets every Tuesday.
The roadmap:
The initial focus is on “Pillar Zero,” which concerns low-income pensioners, while on Thursday, September 3, the critical issue of the 12% actuarial “penalty” reduction will be on the table.
Among the most significant innovations of the planned reform are the recognition of pensionable earnings and the subsidization of Social Security Fund contributions for groups that were previously excluded from thelabor market.
Specifically, support is provided for mothers who took time off to care for their children, for informal home caregivers of relatives up to the second degree, as well as special provisions for people with disabilities, students, and those new to the labor market. These are points on which the unions have already requested further clarification regarding the application process.
As for the financial aspect, the increases will be phased in over a five-year period, without increasing the total cost over a 50-year horizon.
A typical example is a projected increase of 100 euros: upon implementation in 2027, the retiree will immediately receive 40 euros; in 2028 the amount will rise to 60 euros, in 2029 to 70 euros, in 2030 to 80 euros, reaching 100% of the increase in 2031.
At the same time, employers are expressing concerns and calling for safeguards, as was evident during the meeting between the OEB leadership, the President of the Republic, and the relevant ministers.
Employers are closely monitoring the possibility of a future increase in contributions, beyond the already planned 0.5% increase in 2029, while also requesting a reduction in the contribution to the Surplus Staff Fund from 1.2% to 0.6%, with talks between the government and the business community culminating in late November before the full Cabinet.
