Home Economy Triple increase in pensions for the first time in 12 years – Whom does it concern?

Triple increase in pensions for the first time in 12 years – Whom does it concern?

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Triple increase in pensions for the first time in 12 years – Whom does it concern?

A significant income respite, which will be visible from the very first days of 2023, will have hundreds of thousands of pensionerswho will see them in 12 whole years pensions increase them. Combined with its cancellation solidarity gatheringbut also the payment of the last “packages” backdatingincome improvement of at least 2/3 of all pensioners is taken for granted.

In practice, with December payments that correspond to pensions for January 2023, more than 1 million pensioners will see increases that, based on plans for today, are not excluded and approach 6% -6.5%.

At the same time, the monthly solidarity levy of 2.2% to 10% of all monthly pension amounts exceeding EUR 1,000 (EUR 12,000 per year) will be abolished. In addition, it is expected that several hundred thousand pensioners with more than 30 years of insurance experience who did not receive retroactive pensions in previous years because they had a personal difference will see an increase in their pensions. In practice, these are old insured persons who have received retroactive installment payments. About 250,000 make up the difference and are now eligible for the 4th installment of the recalculation increase.

Triple increase in pensions for the first time in 12 years - Whom it concerns-1

Thus, a pensioner with a pension of 1200 euros will receive an increase of 5.5 euros from the cancellation of the solidarity contribution. After the recalculation and after the personal difference is reset, he will receive 13 euros in the 4th installment, and if a decision is made to increase by 6%, he will receive an additional 73.11 euros. Thus, in his “pocket” he will receive 1,291.6 euros.

850,000 low-income pensioners up to 700 euros are excluded from the increase due to personal disagreements.

According to information in EFKA already competent services have begun to record those pensioners who have a personal difference, those who are entitled to increases, either because they have no difference, or because it is small, as well as dividing them into “old” and “new” . i.e. those who were already pensioners before the Katrugalu law came into force and those who became pensioners after May 2016. In fact, registration is done by income category (for example, 500, 600 or 700 euros) to determine whether support for a large number of low-income pensioners is excluded from income.

However, according to the first calculations of the services, as well as estimates by social security experts, approximately 850,000 pensioners, many of whom are pensioners with low incomes up to 700 euros, will not receive the increase, as follows from the recalculation made in accordance with the Katrugalos law. , the pensions they receive now are higher than those they would receive if their pension was calculated under the new system, i.e. they have a personal difference. It is also expected that about 300,000 retirees will see a minimal increase.

According to experts, old pensioners with a personal difference of more than 60 euros will not see an increase, the registered personal difference will simply decrease, and they will receive an increase in the future as soon as their personal difference becomes zero. Accordingly, older pensioners with a personal difference of less than 60 euros are expected to either have a positive difference to zero after recalculating their pensions with increased replacement rates, or move to a negative personal difference, resulting in a very small increase in their pension.

It is expected that higher growth will be seen by new retirees who do not really have personal differences.

Author: Rula Salouru

Source: Kathimerini

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