The SEK and PEO unions have identified weaknesses and problematic areas in an initial review of the bill submitted to them by Labor Minister Marinos Mousiouttas, while emphasizing that bills for the remaining pillars of the reform must also be submitted,
READ ALSO: Mousiouttas explains: How much will two pensioners receiving €3,050 get, and what will happen to the small “tsiekkoudin”?
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The PEO’s announcement
The bill submitted by the Minister of Labor on behalf of the government at yesterday’s meeting of the Labor Advisory Council concerns only one aspect of the pension reform, the Social Security Law.
PEO has repeatedly stated that the Federation’s collective bodies will take a comprehensive position once we have before us all the data and proposals for all pillars of the pension reform. From the outset of this discussion, we have emphasized that for the pension reform to be comprehensive and move in a progressive direction, it must put an end to the situation where retirees with incomes below the actual poverty line, ensure that all retirees have sufficient income, and address the 12% penalty—as well as as well as other gaps and distortions observed today.
At the same time, we emphasize that adequate post-retirement income requires the universal implementation of Provident Funds so that all workers can benefit from them. This means that, once the discussion is concluded, there will be a roadmap for extending the Provident Funds to all workers.
Part of the reform should also be addressing the government’s debt to the Social Security Fund in order to create a genuine reserve that will safeguard the pension rightsof current and future retirees. We look forward to seeing the specific bill on this issue.
Upon a first reading of what was presented to us, we have identified several problematic issues.
We would particularly like to point out that the proposed increases will be spread out over five years, which contradicts the expectations raised by the government itself and does not contribute to a drastic and immediate solution to the problem of low pensions.
SEE ALSO: First reading of the pension reform: Concerns of employers and employees and the “bone of contention”
Furthermore, the provision regarding the 12% penalty is unsatisfactory, as it is incomplete, piecemeal, and applies only to the base portion of the pension. We would like to remind you that, regarding this specific issue, PEO submitted a concrete proposal some time ago, which the government has never brought to the table for discussion.
The bill contains no mention of rectifying the injustice faced by widowed men whose wives passed away before 2018 and who are not entitled to a widow’s pension.
Also of great importance to PEO are the proposals regarding the plan for low-income pensioners, which will be explained at a subsequent session. The special allowance for low-income pensioners remains a key element in addressing the issue of pensioners living in poverty; and we are calling for the plan to undergo a significant revision, taking into account the actual poverty line.
SEE ALSO: The pension system in 18 examples: How much will your pension increase based on your salary and years of service?
The SEK’s Statement
SEK, in evaluating the amendment bill submitted at yesterday’s meeting of the Labor Advisory Council, regarding the amendments to the Social Insurance Law—which constitutes the first part of the Pension Reform and falls under Pillar 1—notes the following:
The bill includes positive elements that align with the policy positions put forward by SEK, as it increases pension amounts for all retirees, but also contains weaknesses that are currently being analyzed at a technical level by SEK officials in collaboration with the ETUC. The proposal will then be discussed by the relevant SEK bodies, and at the next meeting of the Labor Advisory Council on August 28, the necessary clarifications will be sought, and specific questions will be submitted, with the aim of enabling recommendations to be made so that the dialogue can be concluded before the bill is submitted to Parliament.
At the same time, SEK emphasizes the need to immediately advance the remaining pillars of the reform, so that the outcome is comprehensive as a result of social dialogue and aligns with the goal of a substantive and comprehensive reform of the pension system.
SEK reiterates that it is important, in addition to the existing amendment bill, to finalize and submit simultaneously with the above, the framework for the Social Insurance Fund’s investment policy, as well as the framework for economic governance, while it is also important to clarify how Pillar Zero will operate with regard to social support for vulnerable groups of retirees (the current support plan for low-income retirees).
It is also important for SEK that the dialogue on the Second Pillar of Pension Benefits—which constitutes the expansion of the Provident Funds system to all workers—be concluded, so that, before the bill is passed, there is at least agreement on the framework for implementing the Second Pillar. At the same time, the framework for the Third Pillar must also be clarified, so that there is a comprehensive and clear plan for a pension system that will achieve the goal of ensuring adequate pension benefits, for both current and future generations.
In conclusion, as far as SEK is concerned, a comprehensive pension reform must ensure that no retiree has an income below the poverty line and, furthermore, that they have a guaranteed pension that will provide them with a decent standard of living.
