A twin “haircut”, retroactive as of July 2016, has been imposed on primary pensions of more than 2,000 euros a month and cumulative social security benefits exceeding 3,000 euros a month – at least until 2019.
The retroactive pension cuts are defined in a circular issued by the Greek labor ministry, which was unveiled on Thursday evening with the implementation of the recently passed legislation on social security reform — including measures cutting high-end supplementary pensions.
The reductions will be calculated as of July 1, 2016 and apply until Dec. 31, 2018. The difference from the retroactive application will be deducted over five installments.
Looking – optimistically – to the future of the country’s social security sector, the sums deducted from pensions via the current circular will return to their original level as of 2019 – unless the provision is subsequently overturned with another piece of legislation.
The circular clearly states that the recalculation of pensions includes disability benefits.
