“The government recognizes the importance and the critical economic and social role that the second pillar of insurance can play, both for the increase of the replacement rates of the income of the pensioners, and for the increase of the savings that finance investments for the benefit of the Greek economy as a whole. The situation for the development of the second pillar is very good, but we must not leave things to the “autopilot”, but ourselves to lay the foundations for healthy and sustainable development of the industry. proposals formulated in the IOBE report are already being processed by the Ministry of Labor, such as the consolidation and strengthening of supervisory bodies and the possibility of establishing multi-employer Occupational Insurance Funds “.
These were pointed out -among others- the Deputy Minister of Labor and Social Affairs, Mr. Panos Tsakloglou, during his speech on the occasion of the presentation of the sectoral study of IOBE for Occupational Insurance that took place today in a hall of the Athens Stock Exchange.
As Mr. Tsakloglou characteristically noted, “the development of such an important institution can not and should not be based on ephemeral tax incentives but on principles, rules, real needs, bonds of trust and high quality services to the insured. “The rule is that the Occupational Funds offer mainly a supplementary monthly income – that is, a pension. In Greece, the almost universal rule is to provide only a lump sum. I think this should be a problem for us.”
The main service of the Occupational Insurance Funds is the investment and the main product is the net return of the contributions of the insured. The Undersecretary of Labor and Social Affairs identified the basic principles of Good Governance, Transparency and Economies of Scale, which should govern the development of the second pillar professional funds.
As Deputy Minister Tsakloglou characteristically emphasized: “We must inform the citizens -especially the young- to help them understand the importance of pension savings, in addition to the mandatory savings of social security. We need a constant awareness campaign for the need for “The Ministry of Labor is working on a new regulatory framework that will promote the development of the Occupational Insurance Institution, strengthening the viability of the social security system and the development of the economy.” .
Source: Capital
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