Postponement measures for thousands of insured, mainly civil servantsand for EFKA debtorsold and young, includes mini law insurance plan which is expected to be approved in August cabinet and be voted parliament autumn.

It is a “broom bill” with provisions intended to either correct past mistakes, such as a 20-year statute of limitations on debts, which will now become 10 years after the decision Council of State (State Council)or increase the income of, for example, civil servants by abolishing special fee 1% imposed on their wages in 2011 in accordance with the first memorandum. In addition, as Prime Minister Kyriakos Mitsotakis said from the floor of parliament, payments for the permanent repayment of debt to the country’s insurance institution will increase from 12 to 24, in order to EFKA agree with the tax authorities. The provisions that are “combed” by the competent services of the Ministry of Labor include procedural and technical issues of the functioning of social protection funds.

Detail as shown “TO”with the controversial bill will interfere with the reservation of 1% of the salaries of civil servants, which goes to Government Employees Welfare Fund. There is discussion as to whether this contribution should be abolished or whether it should be included in the regular contributions to the Social Insurance Institution and thus have income from a lump sum received by civil servants.

Another important provision will be set as a limit after which EFKA’s claims against businesses or self-employed people with insurance debt will be 10 years old. The provision follows the decision of the Supreme Court, which ruled that the 20-year statute of limitations, as defined Law of Katrugalos, is unconstitutional. In fact, as of 2027, the statute of limitations is considered to be after 5 years.

According with information from “K”, the regulation will define 10 years as the statute of limitations for EFKA claims, both broad and narrow. In practice, this means that if more than 10 years have passed from the moment the debt was incurred until the EFKA issued a certificate certifying this debt, then the additional 10 years expire. Since the Katrugalu Law also provides for a procedure for assessing debts by the Insurance Debt Collection Center (KEAO), the new regulation also establishes a 10-year period as the starting period of the limitation period from the date the debt is received. at the Center until the notice of the debtor and the commencement of the recovery procedure.

The mini-insurance bill is expected to be voted on in Parliament in the fall.

In order to harmonize what applies in KEAO with what applies AADEThere will also be a provision in the bill that would make the 12 fixed debt settlement payments become 24.

In addition, there will be uniform conditions for applying for a successive pension between EFKA and organizations outside it, such as TtE, EDOEAP, 4 compulsory occupational insurance funds and mutual funds.

In practice, it will be stipulated that in order to apply at the last institution, there must be 1000 seals, of which 500 for the last 2 years instead of 1500 and 600 respectively. Also, according to with information from “K”the proposed measures include a positive intervention in the military and security forces insurance regime for a 5-year period of hostilities.

Providing respite for 150,000 insured persons

Postponement for more than 150,000 insured persons with debts to Insurance Debt Collection Center (KEAO) which have been created in recent years and mainly during the corona virus pandemic, it is assumed that the reserve, which will increase to 24 payments for the permanent repayment of debts, will give. In particular, according to experts, approximately 95,000 debtors, who, according to the KEAO data, were included in the 12th installment plan in the first quarter of 2022, will automatically fall into the 24th installment plan, as a result of which the amount of the monthly payment will be halved. Of course, there are still about 90,000 insured people who left the system in the first quarter of this year, and experts estimate that some of them, if premiums increase, will be able to join again. In any case, as today, the remaining “irregular” debtors can also join the permanent debt settlement.

The provision on the 10-year limitation period for debts, according to the Ministry of Labor, concerns debts of 250 million euros. These are debts for which measures were not taken in a timely manner to interrupt the limitation period, such as enforcement measures (auctions, etc.), both by EFCA and KEAO. Welfare experts note that the promoted intervention will pave the way to retirement for thousands of freelancers and self-employed people who, due to increasing debts to the EFKA, are unable to apply for a pension. With the statute of limitations for a significant part of the debts and as long as the remaining debt does not exceed 20,000 euros for professionals and 6,000 for farmers, the door to retirement will open.