Seven questions and answers about raising pensions, payments from which begin today, were published by the Ministry of Labor.

The announcement follows in detail:

1. Pensions increase after 10 years, but not all pensioners will increase. How many retirees are actually seeing an increase in their income?

The vast majority of pensioners, namely 2,499,285 people out of a total of 2,634,786 people (94.6%), see an increase in their income by one, two or even three times. In fact, the increases are such that 1 out of 2 pensioners will receive at least one additional pension (many and amounts more than one additional pension) in 2023. The increases began to be implemented as early as December 20, 2022. As a result:

From the increase of 7.75% given these days, more than 1.7 million pensioners.

Since the abolition of the special solidarity levy, which has benefited more than 900,000 pensioners.

From a €250 emergency financial assistance payment to more than 1.2 million pensioners. This was preceded by the payment of additional emergency assistance in the amount of 250 euros for Easter.

From the payment of the 4th annual contribution, provided for by the Vrutsis law, for pensioners who applied before May 2016, with more than 30 years of insurance experience, and concerns 230,000 pensioners.

2. The increase in pensions by 7.75% covers only part of the loss of pensioners’ income due to inflation. Should the government increase pensioners’ incomes more?

During these 3.5 years, the New Republic government took other measures to increase workers’ incomes. With Law 4670/2020 (Vrootsis law), he amended and abolished in practice most of the provisions of the Katrugalos law. Specifically:

1. This resulted in an increase of up to 8% for more than 224,000 pensioners with more than 30 years of insurance coverage under the Brutsis Act.

2. He reduced the tax rate from 22% to 9% in the lowest tax bracket. In simple words, if earlier a pensioner gave 22 out of 100 euros to the tax authorities, now he gives 9 euros.

3. He proceeded to reduce the pension withholding from 60% to 30% for working pensioners.

4. He abolished the upper limit of 1,300 euros of the Katrugalu law for those who receive basic and supplementary pensions.

5. At Christmas and Easter, he gave 3 times the emergency allowance to support the income of more than 1 million low-income retirees.

6. He reversed the cut of 1.2 billion euros under the Katrugal Law, which the Council of Europe considers unconstitutional for all pensioners receiving basic pensions, exhausting the economy’s budgetary constraints and always respecting court decisions.

7. He proceeded to increase the national pension received by our emigrants from Northern Epirus and the former USSR, an increase that will be visible in their accounts in the next period in addition to an increase of 7.75%.

At the same time, the government continued further cuts to pensioners’ income, such as:

• Elimination of taxation of parental benefits.

• 35% reduction in real estate tax.

• Establishment of a fuel pass and a market pass.

• Cumulative reduction of ENFIA by 35%

3. However, pensioners with a personality difference do not see an improvement in their income. Why is this happening;

The personal dispute was established by the Katrugalu Law (No. 4387/2016) in pensions issued before 2016. The SYRIZA government has set about establishing a personal dispute to avoid a reduction in pensions, but in return they cannot increase these pensions in the future. only if they completely eliminate personal difference. Thus, about 1.5 million retirees found themselves with “hidden debt” that they had to pay off first before they could see a real increase in their pockets.

The elimination of their personal difference is carried out only through increments. And we are working in this direction. The first increases came with the adjustment of Vroutsis replenishment rates. In addition, 83% of the 910,000 pensioners with relationship differences also saw an increase in their income as early as December last year.

In particular, 260,000 of them received an emergency financial assistance of 250 euros for Christmas (they also received an additional 250 euros for Easter), and 515,000 received an increase in their pensions by eliminating the special solidarity levy. Thus, these pensioners also see an increase in their incomes and at the same time a significant reduction in their personal differences, which will lead to a permanent increase in the future.

4. Therefore, how many pensioners will “erase” their personal difference with an increase in pensions?

Currently, 910,000 pensioners have a personal difference out of a total of 2,630,000 pensioners. In 2019, there were 1.5 million such pensioners with personal distinction. Today they have decreased by about 600,000, because with the introduction of the improved replenishment rates of V. Vrucis, 280,000 of them have eliminated the personal difference and received increases. And on top of that, another 320,000 or so are zeroing out their personal differences with the 7.75% increase given out these days and will also see some increase.

5. Despite all this, there are also many pensioners who will not even receive their pension. When will the shame of incomplete pensions end?

The New Democracy government has implemented a comprehensive policy to deal with the problem of incomplete pensions. In particular, he continued:

• When liquidating overdue basic pensions, as more than 500,000 pensions have been issued in the last 24 months. New pensions applied for during 2023 now take 60 days on average, compared to 74 days in Germany.

• It paid the pending pensioners the benefit amounts to which they were entitled, which amounted to 500 million euros.

• He proceeded to liquidate the thousands of unpaid dividends in the government stock fund and made it possible to pay them immediately every quarter.

• It has completed the elimination of lump-sum payments in the private sector and is proceeding with the immediate elimination of overdue public lump-sum payments.

• The liquidation of incomplete ancillary pensions (the condition was that the main pensions were issued first) is rapidly moving forward through the digitization of procedures, the creation of a Control Tower in the standards for the liquidation of basic pensions, the strengthening of the staff, and so on.

6. What did SYRIZA do during its administration to improve pensioners’ income?

SYRIZA and Alexis Tsipras promise more than 6.5 billion euros of assistance to pensioners, which they do not have and where to find. They even go so far as to promise the cancellation of a personal dispute for which they themselves voted and which is their brainchild! However, the truth is that SYRIZA ONLY made cutbacks during her reign. Specifically:

1. An increase in the insurance premium rate from 4% to 6% of the total amount of basic pensions received by a pensioner and, for the first time, the introduction of a 6% insurance premium for supplementary pensions.

2. Gradual change in the limits of the retirement age until 01/01/2022. New limits: 62 years for full pension with 40 years of insurance and 67 years with 15 years (Law 4336/2015).

3. Reducing the minimum pension from EUR 486 to EUR 392.7 and abolishing the minimum pension (Hakali 2015 decision).

4. Recalculation of additional pensions from 1.6.2016 and reductions for pensioners with the sum of the basic and additional pension of 1170 euros net (1300 euros gross).

5. Increase in Supplementary Pension Insurance (SNPI) contributions by one percentage point overall (from 3% for the insured and 3% for the employer to 3.5% and 3.5% respectively) in 2016-2018 and by half a percentage point in 2019. -2022, imposition of sustainability clause on additional insurance fund.

6. Reducing – from 01.01.2016 – the dividends of the Civil Servants’ Equity Fund by an average of 35%, increasing the monthly contribution by 12.5% ​​from 4% to 4.5% and introducing a sustainability clause.

7. For lump-sum amounts from 01.01.2014 they are calculated according to the virtual capitalization model, and until today only paid contributions without interest are returned. As a result, the overall reduction exceeds 25%.

8. Cancellation of EKAS for 370,000 low-income pensioners, as well as changes in participation criteria until 12/31/2019.

9. “Cutting” pensions for widows by introducing both an age limit and a limitation on the survivor’s pension to 50% compared to 70% of the deceased’s pension.

10. The abolition of the spouse’s family allowance in the new basic pensions, as well as the complete abolition of family allowances in the new supplementary ones.

11. An average reduction of 44% in additional allowances from 01/01/2015. In particular, in terms of new additional pensions with an insurance period until December 31, 2014 with a coefficient of 0.45 per year and the calculation of a pension with an insurance period and from January 1, 2015 on an individual account, with a conditional capitalization model, which fanatically fought against SYRIZA election campaign.

12. Reduction of the National Pension for Disability Pensions. Only those with a disability rate of 80% or more receive the full national pension.

13. Increase in nominal value of recognition for the year.

14. A 60% reduction in the amount of the basic and additional pension for beneficiaries who take up employment or acquire a status or activity that is compulsorily insured by EFKA and ETEAEP, and a 100% reduction for employment in the state or in the NPDD. .

15. Freezing pensions until 2022, capping future increases in growth (50%) and inflation (50%) at higher inflation rates.

16. Offset of allowances from 2023 with a positive personal difference – after recalculation – until their complete elimination.

17. Basic pensions issued from 13.05.2016 onwards, in accordance with Law 4387/2016, are reduced on average by at least 20% to 35%.

7. Apart from the personal dispute, what other pending cases did the insured inherit from against Katrugalu?

The SYRIZA government inherited the following:

• More than 1,050,000 outstanding pension and insurance liabilities.

• There remains a debt of 487 million euros to more than 142,000 pensioners awaiting release.

• This left the EFKA in total disarray, distributing only 900 pensions per day, whereas today 1250 pensions are issued per day.

• He presented a pension mechanism with an average period of 19 months. Today, the average period for issuing a pension in 2023 is 60 days.