There is no possibility of pension cuts as part of the pension reform, Labor Minister Marinos Mousiouttas told CNA on Tuesday, noting that, on the contrary, all retirees will receive some increase, whether small or large. He also noted that the goal remains to submit the bill to Parliament during the first plenary session following the summer recess, which is expected on September 20.
When asked about a media report regarding a possible reduction in certain pensions, Mr. Mousiouttas said that “there is no such possibility.”
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As he explained, during the initial stages of drafting the reform, one of the options considered called for a reduction of about 5% for approximately 5% of the highest pensions paid by the Social Insurance Fund.
“There was a universal backlash from the social partners, but also based on other factors we had taken into account, we immediately ruled out that possibility and moved forward with options that do not include any reduction,” he said.
“On the contrary, everyone will see some increase. Some will be smaller, and others larger,” he added.
Regarding the progress of the bill, the Minister of Labor said that, following his meeting with Finance Minister Makis Keravnos last Wednesday and with the President of the Republic on Friday, the text was forwarded to the technical experts for finalization, as certain details remained to be clarified and decisions needed to be made on certain options.
He expressed hope that the bill would be ready by Friday, noting that, otherwise, it would “certainly” be provided to the social partners before the Labor Advisory Council meeting on August 19 and would simultaneously be put out for public consultation.
He acknowledged that the time available to review the bill would be limited, noting, however, that on August 19, the Ministry will present it in detail to the social partners and listen to suggestions and questions, while some may choose to reserve judgment until they have had a chance to review it.
The discussion, he added, will continue at the next meeting of the Labor Advisory Council on August 28, when everyone will have all the relevant information at their disposal.
Mr. Mousiouttas expressed his belief that, “with a positive attitude and a concerted effort from everyone,” the goal of submitting the bill to the first plenary session of the House of Representatives—scheduled for September 20—can be met, so that its debate can begin in the relevant parliamentary committee.
When asked to comment on the doubts expressed to CNA by SEK Secretary-General Andreas Matsas regarding whether the necessary dialogue can be completed by then, the Minister said that “someone can engage in dialogue for ten days, or even ten years.”
As he noted, based on the information the Ministry has before it and what it has heard to date from the social partners, the differences “are not such that we cannot move forward.”
He emphasized that the Ministry is open to suggestions, provided they align with the philosophy of the bill and do not alter the economic parameters.
“If there is something that aligns with the spirit of the legislation and does not alter the financial parameters, we are ready to adopt it,” he said.
He clarified, however, that any proposal entailing additional spending must be accompanied by a corresponding proposal to reduce spending elsewhere.
“The Fund’s resources, as you understand, are not inexhaustible, and we are all talking about the sustainability of the Social Insurance Fund and sustainable public finances,” he noted.
The Minister expressed his conviction that, when the social partners review the bill, they will realize that the available options are specific and limited, unless proposals are submitted to prioritize certain measures over others while reducing others accordingly.
“I feel, however, that because everyone wants the reform to move forward—and I am certain of this—we will find common ground and move forward,” he said, adding that while there may not be unanimity, he believes a convergence of views is possible.
Referring to the second pillar and the Provident Funds, Mr. Mousiouttas said that the relevant discussions are continuing in the technical committees, with the next meeting, chaired by the Ministry’s Director General, scheduled for September 1.
He noted that, in parallel with the discussion in the Labor Advisory Body regarding the first pillar, discussions on the second pillar are also underway.
As he said, it is “hopefully possible” to reach a framework agreement on the second pillar as well.
He clarified that at this stage, the focus is not on introducing a bill, but on reaching a framework agreement so that “both pillars are before us at the same time,” with the first to proceed through legislation and the second through the framework agreement.
He clarified, however, that the government does not consider reaching an agreement on the second pillar a prerequisite for moving forward with the first.
“We will, however, make every effort—and are already doing so—to ensure that, if possible, an agreement on the second pillar is reached at the same time,” he concluded.
Source: CNA
