Social Security Foundation

Internal devaluation in Greece mainly concerns salaries and not the prices of commodities, the International Monetary Fund said in a recent report, suggesting that living in this country has become much more expensive due to the decline of incomes and increases in taxes.

In view of the clear and present danger that the revenues of the new Single Social Security Entity (EFKA) will crumble due to the excessive contribution-and-tax burden on hundreds of thousands of self-employed professionals and farmers, the Labor Ministry is seeking a lifeline in the revenues of the former Social Security Foundation (IKA) and the Social Security Debt Collection Center (KEAO).

Social security funds are entering the toughest period of the year, resorting to various solutions used in the past as their growing deficits make it even harder for them to cover pension payouts for December 2016 and January 2017.

Pensioners in Larissa, central Greece, staged an anti-government rally Wednesday to protest a new round of pension cuts under the nation's bailout program.

The Social Security Foundation (IKA) is the social security system's ball and chain, as just a couple of months before its incorporation into the new Single Social Security Entity (EFKA), its employees are warning about the levels of its revenues and payouts.

An Athens prosecutor Thursday brought criminal charges of breach of faith and fraud against Rovertos Spyropoulos, the former head of the Social Security Foundation (IKA) who was responsible for the finances of the PASOK party when George Papandreou was prime minister (2009-11).

The governing board of the Social Security Foundation (IKA) on Thursday rejected the management's request for money from the Social Security Capital for the Solidarity of Generations (AKAGE) for pensions for the rest of this year, while the board of the fund of the self-employed (OAEE) approved a similar request to the amount of 150 million euros.

Even if the Government with the insurance law of Katrougalos has imposed cuts in ancillary pensions, the abolishment of EKAS, an increased deduct contribution and 11 in total ways to cut the pension of hundreds of thousands of pensioners, the deficit of IKA has doubled because of the reduction of the state funding and the income decrease.

Despite the pensioner’s patience, IKA’s deficit is doubled by the reduction of Government Funding. The administration of the Social Security Foundation (IKA) revealed that the deficit will be 2.1 Billion Euros for 2016, from 950 millions  last year.

The administration of the Social Security Foundation (IKA) is on Thursday expected to seek approval for additional funding from the Social Security Capital for the Solidarity of Generations (AKAGE) reserves to cover part of its constantly growing deficit.