All pending packages of retrospectives and increases in pensions

All pending packages of retrospectives and increases in pensions

By Dimitris Katsaganis

Two plus one big “packages” of retrospectives and increases are expected to “run” this year. Both are “confirmed”, while the third has not yet been judged.

Compared to what has not yet been judged, it concerns the retroactive “old” retirees who suffered cuts in supplementary pensions and “gifts” during the 11 months between June 2016-May 2015. Beginning of next April, ie in about 1½ month from today, the decision of the SC is expected.

If it is positive, as assessed by legal circles with which it came in contact with Capital.grthen the “old” retirees (close to 1 million) will be entitled to a refund of about 2-2.5 billion euros, however, in this case, it remains open (until the relevant court decision and if it is positive for retirees) when and at what rates retroactive payments will be made.

The second package of “retroactive” is “certified” and concerns retirees who are waiting for their pension. This “package” is divided into two main smaller ones: , the priority for the government is to reduce the outstanding main pensions for those who had one (eg only before IKA or only before OAEE etc.) or successive insurance (eg initially IKA and after OAEE). (close to 80,000) and the payment of retroactive close to 270 million euros by next June is a commitment of the government to the institutions, however, in addition to the overdue applications there are about 50,000 non-overdue applications which are also pending and also concern one or successive insurance (with a retroactive cost of an additional 120 million euros.) There are also an additional 50,000 pending applications for parallel insurance. Those who have submitted them are pensioners with simultaneous insurance in more than one Fund, who have received a pension and are waiting for the second pension – increase in the first. An additional 25,000 applications for international pensions are pending. At the same time, the 120,000 outstanding supplementary pensions, for which 220 million euros have been counted retroactively, have entered a trajectory of increasing the liquidation rate.

The third large package concerns in particular the “new” retirees, ie those who retired after 13 May 2016 based on the provisions of the Katrougalos law and the Vroutsis law.

According to officials of the Ministry of Labor, these are close to 600,000 retirees who are entitled to an increase in nominal pensions from January 1, 2023, as on December 31, 2022 ends the “freeze” of increases, which is valid from January 1, 2017.

According to the first estimates of the same sources, this increase could amount to 4%. Given that the average main pension under Katruggalo law is close to 700 euros, after the expected increase it will amount to 728 euros (or 28 euros / month or 336 euros / year). The increase will be paid at the end of December this year, as the January pensions are paid then. The total budget cost on an annual basis is expected at EUR 200 million. At the same time, an increase, “accounting”, will be received by the vast majority of “old” retirees (ie those who retired before May 2016), as their negative personal difference will be reduced.

Source: Capital