The government is planning three important interventions for pensioners in the coming period. The matter concerns the disbursement of retroactive payments related to gifts and vacation allowance to pensioners for the period 2013-2018 – to 370 thousand beneficiaries who filed an appeal before the courts (the positive decision of the Special Supreme Court – expected Al Dirham) -, solving the puzzle of widows’ pensions as well as reforming the solidarity contribution for retirees (EAS). . especially:
370,000 pensioners will be retroactively granted in amounts up to 4,000 euros (gifts and vacation allowance for the period 2013-2018), according to secure information, with the positive decision expected from the Special Supreme Court, which will be issued next month. The total cost amounts to 400-500 million euros. The government has made it clear that those who have taken legal action will receive the benefits they claim retroactively.
If the AED’s decision (as expected) vindicates pensioners, the government will have to pass legislation to speed up the payment of pensioners’ entitlements. This means that the 900,000 pensioners who did not go to court because they estimated that they would recover the cuts that were deemed illegal by Council of Europe decisions will not receive any profit.
The issue was discussed at the AED on 17 April 2024 and the relevant decision is expected to be issued in the summer. If the Dirham decision is issued in favor of pensioners, it reaffirms the three decisions issued by the Council of State (StE) in 2015, 2019 and 2021, according to which it was decided that pensioners were entitled to recover the amounts paid from the reductions imposed on them in the 11 months between June 2015 – May 2016 in main and additional annuities and gifts. The case does not relate to the reductions imposed on supplementary pensions, meaning that even if the dirham refuses to return the gifts, pensioners must receive their supplementary pensions retroactively.
Widows’ pensions
The Ministry of Labor is considering two solutions to mitigate the impact regarding the hot topic of reducing widows’ pensions. Beneficiaries of the widows’ pension after three years – according to the law – lose half of the entitlement if they join work or retire (from 70% of the insured’s direct pension to 35%).
The aforementioned reduction has already been applied to state and OGA pensioners and has not yet been extended to private sector pensioners. According to the lawyers, the government will be required to introduce the regulation, because if government employees and farmers go to court, it will have to retroactively return the deducted amounts to them. To mitigate the effects, the Ministry of Labor is considering two solutions:
First: The beneficiary must choose the pension that will be reduced by 50% after three years. This way, he will be able to choose a smaller pension reduction.
Secondly, the possibility was discussed that the reduction relates only to the national pension (€426.17) and not to the proportional pension. In practice, benefits will be limited to 35% of the deceased’s pension, with the 50% reduction required by law referring to 70% of the directly insured pension received by the widow. Under the original plan, the reduction should be imposed on all widower’s pensions (male and female) granted before October 1, 2020 and the day the beneficiary is working or retired.
Solidarity contribution reform (EAS)
Today, thousands of pensioners with pensions of more than €1,400 receive smaller or zero increases in their pensions, with no personal difference, due to the Solidarity Contribution (EAS), a bizarre and unjustified tax “extortion”.
This applies to those who have a main pension or a main pension total greater than 1,400 euros. The aim of the interventions (in the fall), according to Deputy Minister of Labor and Social Security Panos Tsakloglou, will be to reform the classes created since 2010 and make them more fair and proportional in terms of income. Of retirees. In particular, for the main pensions in the new system, there will be a maximum limit on deductions, so that no pensioner pays more than this, but instead receives an exemption from deductions.
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