By Stelios Papapetros
Major changes are in store for Greece’s social security system if a draft bill unveiled by the government on Tuesday passes through a “twin process” of lenders’ approval followed by a Parliament vote, with a wholesale merger of all primary pension and supplementary funds into two entities the “highlight” of the reform.
Moreover, the draft bill – as “N” had reported — proscribes increases in practically all monthly social security contributions, by wage earners and employers, as well as by various categories of self-employed professionals, from physicians to farmers.
New decreases for higher primary pension levels are foreseen, a measure that will also affect supplementary monthly pension bonuses and pension lump sums, along with cuts in dividends paid out to beneficiaries of funds. Such funds will be cut off from state subsidies, a practice that in the past saddled the state budget with hundreds of millions of euros in burden.
Besides increased contributions, higher deductibles for health care services and pharmaceuticals are in the works for beneficiaries.
Additionally, one of the Greek social security system’s “sacred cows”, the cut-off point between “older” beneficiaries and “younger” ones, which was the year 1992, will be abolished.
