What changes for retirees who continue to work

of Dimitris Katsaganis

Single “regime” applies retroactively from 1 March 2022 to all retirees who continue to work.

This means that not only employees retiring, ie those who retired after 13 May 2016, but also employees retiring, ie those who retired before 13 May 2016, will be subject to a 30% reduction in retirement. This means that old retirees who continue to work will see this reduction in their May pensions, which will be paid at the end of this month.

It is recalled that the old retirees who work received 100% of their pension.

According to a relevant announcement of e-EFKA, based on the insurance law Vroutsis passed in February 2020, for young retirees is provided the payment of 70% (ie reduction of 30%) of the pension for as long as they work, from 40% ( ie a reduction of 60%) which was provided based on the Katrougalos insurance law that has been in force since May 2016.

In the same law there was a provision for adjustment of the pension and payment of 70% to the old pensioners who work at the same time. In fact, a transitional period was given which expired at the end of February 2022.

From March 1, 2022, therefore, the same regime applies to all retirees with parallel work, regardless of whether they retired before or after May 2016.

It is reminded that only the old retirees who work at the same time and have not declared it to EFKA until today, are invited to do so by coming to the competent services of the Organization and for their convenience this opportunity is given until May 31, 2022. It is possible to set an electronic appointment via the single service number 1555. Please note that retirees who have already registered their employment are not required to re-register.

Circular

Based on the relevant implementing circular, the provisions of the Vroutsis law apply to retirees due to old age of all bodies affiliated to e-EFKA and the public, including persons receiving a sponsorship or parliamentary pension who have either taken up a job or capacity or activity before on 28.2.2020 or will undertake work or self-employment after the entry into force of the Vroutsi law, ie from 28.2.2020, if for the work or the capacity or the activity there is an obligation of insurance in e-EFKA, according to the relevant general or special or statutes provisions of the former bodies that joined the e-EFKA.

Specifically, it concerns:

– Insured persons who retired from 28.2.2020 onwards and took up work or activity either before or after their retirement,

-Insured persons who had already retired on that date and took up employment after 28.2.2020,

– Insured persons who had already retired on that date and who had taken up a job or capacity or activity before 28.2.2020. In this case there are two categories:

(a) retired employees who have been covered by the provisions of the Katrugal Act to which the Vroutsi Act applies from 28.2.2020, provided that they have continued to work on that date; and

b) pensioners who had taken up employment or had acquired a capacity or activity compulsorily subject to insurance before 13.5.2016 and did not fall within the scope of application of the provisions of the Katrougalos law. Retirees of this category fall under the scope of the provisions of the Vroutsis law from 1.3.2022 if they continue working on this date. However, in case they terminate their employment until 28.02.2022, it is understandable that for as long as they had worked they were subject to the previous relevant provisions on the employment of retirees.

For example, a retiree who took up employment on 1.7.2016 and continues to work after 28.2.2020, falls under the provisions of the Vroutsis law from 28.2.2020, while a retiree who took up employment on 1.3.2016 (ie before the entry into force of provisions of the Katrougalos law) and who continues to be an employee after 28.2.2020, falls under the provisions of the Vroutsis law from 1.3.2022 (if he continues to work or is self-employed even after this date).

– Those who work as employees or are self-employed in a country outside the European Union or in a country with which no bilateral social security contract has been concluded, which are treated on a case-by-case basis as above.

With regard to retirees who have already undertaken or are undertaking work since the publication of the law or acquire a position or activity in General Government bodies compulsorily subject to the insurance of e-Ε.Φ.Κ.Α., a transitional stage of one year is established for the suspension of payment of the pension based on the time point at which they complete the 61st or 62nd year.

Specifically, for retirees who complete the 61st year of their age until 28.2.2021, on the one hand, the suspension of payment of their pension is lifted from the day after the completion of the 61st year of their age and, on the other hand, if they continue working after Upon reaching this age, the provision concerning the gross amount of their pension shall be reduced by 30%.

From 1.3.2021 onwards, the suspension of the payment of the pension will be lifted after the completion of the 62nd year. It is understood that in case the 62nd year of age is completed before this date, the retirees will fall under the provisions concerning the day after reaching the 62nd year of age.

Those who do not come by May 31 to declare their parallel work face the risk of a fine equal to 12 pensions. Finally, for retirees who have already declared their parallel work, the adjustment of their pension will be seen for the first time in the payment of pensions in April (end of March).

Who are excluded

It is emphasized that the following categories of pensioners are excluded from the application of the above provisions, who will continue to receive their entire pension regardless of employment:

-OGA pensioners if they exercise employment subject to the former OGA insurance.

Retired mentally ill people with a disability due to a mental illness or mental retardation or sympathy pathology of mental illness and mental retardation, at a rate of 50% or more, provided that employment or self-employment is appropriate for social and psychological reasons.

– Retirees with old-age disability due to private sector disability – severe disabilities such as paraplegia, quadriplegia, etc. who receive an old-age pension with 15 years of insurance.

– Retirees with old-age disability due to public sector disability (civil and military employees) – severe disabilities such as paraplegia, quadriplegia, etc. who receive an old-age pension with 15 years of insurance.

– Those who receive the non-institutional allowance or the corresponding public allowance.

– Large families, of which at least one of the children is a minor or is studying in higher or higher schools and until the completion of the 24th year of age or is incapable of any livelihood work.

– Those who receive a pension from the Ministry of Education, war, honorary, due to death / disability due to service, etc.

Retirees of other institutions and the State, provided that their annual income from employment in the agricultural sector as farmers, beekeepers, stockbreeders, poultry farmers and fishermen does not exceed the amount of 10,000 euros.