Pension

After Labour Ministry started to investigate the increasing debts run up by the State Pension Fund, PIOM, it rushed to repay its multi-million euro owings, private pension funds confirmed.

PIOM's debt burden had raised questions about its liquidity and the government's policy of annual pensions increases.

The new draft bill on social security system that Greek government proposes includes indirect pension cuts of up to 125 euros per month.

According to the newspaper “Eleftheros Typos”, Article 10 of the bill provides the child benefit included in the pension that it will be calculated based on new rates, 8 % for the first child, 10% for the second and 12% for the third child.

In an interview with Sunday edition of Kathimerini newspaper Labour Minister Giorgos Katrougalos claims that he is political flexible to proceed to changes that do not involve issues of principle.

“For the first time we will have one speed pensioners,” Labour Minister Giorgos Katrougalos on Friday said in a press conference on social security reforms trying to defend the new draft law.

The four associations representing Greek employers on Thursday issued a joint announcement after their meeting with Prime Minister Alexis Tsipras, saying they were not opposed to a reasonable increase in social security contributions.

While thousands of pensioners are trying to realize that their pension will not exceed the amount of 600 euros with poverty line set at 665 euros, Labour Minister Giorgos Katrougalos makes great efforts to convince Greek citizens that it is not true that there would be huge pension cuts accusing opposition of telling lies to the people.

After the statements of government’s spokesperson Olga Gerovassili who stated that “pensioners could see a prospect after 2018” deliberately twisting the obvious truth, New Democracy’s MP Yannis Vroutsis revealed on his Twitter account the lies of Mrs Gerovassilis.

The new pension reforms proposed by the government will not cut pensions by even a single euro, government spokeswoman Olga Gerovassili said on Tuesday, while severely critizing the attitude of the opposition parties New Democracy and PASOK and characterized them as “brazen and irresponsible”.

Temporary New Democracy leader Yiannis Plakiotakis on Tuesday attacked government spokeswoman Olga Gerovassili for her statements on whether there would be any further pension cuts.

The government “sacrifices” the young pensioners in the name of its “red lines”, even though it has committed to protect the pensions paid. For the new pensions over 750 euros – and not over 1000 as the government had previously promised- a 15% reduction rate will be applied due to low replacement rates. For pensions over 2,000 euros, the reduction rate will reach 30-35%.