Fast track calculation of retroactive pensions

By Dimitris Katsaganis

A new package of retrospectives is created by the regulations for accelerating the issuance of new pensions, which are provided for in an amendment submitted yesterday by the Minister of Labor, Kostis Hatzidakis, to the Parliament. The amendment provides for the possibility of issuing “fast track” and “trust” pensions.

The “fast track” model refers to the applications, which were submitted from April 1, 2022 onwards, while the “trust” pensions model refers to the pending – until the entry into force of the provision – applications that have been submitted until March 31, 2022.

With regard to “trust pensions”, the deed of award of a pension is issued on the basis of the data recorded in the information systems of e-EFKA and the declarations of the insured for the recognition of pension time in addition to that resulting from the aforementioned systems. , the statements are accepted without the need to present documents that document them.

Secure information Capital.gr from competent officials of the Ministry of Labor state that for the pending applications that are included in the mechanism of issuing the “trust pension”, the time of submission of the initial application is valid.

Thus, along with the issuance of the “trust pension”, the pensions corresponding to the period from the submission of the initial application to the month of payment of the “trust pension” will be paid retroactively, which, as the same sources point out, will be considered final. In the event that the beneficiary of the “trust pension” has received a pension advance or a temporary pension, it will be deducted from the “trust pension” for the period from the month of submission of the initial application until the month of receipt of the 1st “trust pension” and the difference will be paid retroactively, together with the 1st “trust pension”.

For example, a pensioner with 15 years of insurance, after applying for a final pension in September 2021, received a pension advance of 345 euros. He is expected, without reservations, to receive a final pension of around 420 euros. As the “trust pensions” system will be in force from May 2022, this pensioner will receive his final pension next month, ie in June 2022, according to the same sources. The difference between an advance and a “pension” trust ”amounts to 75 euros. The positive – for the retiree – this difference will be paid retroactively to the retiree of our example for the 10-month period between September 2021- June 2022. Thus, he will receive the amount of 750 euros, after deducting the deductions (in favor of EOPYY 6% etc.) .

The same sources point out that the process of fast track etc for retirement applications does not mean the abolition of the advance payment regime, but also the temporary pension.