Greek Prime Minister Announces Supplementary Pension Reform

During a cabinet meeting on Wednesday, Prime Minister Kyriakos Mitsotakis presented a complementary welfare reform slated for parliament in August.

He said the new system, based on the “Swedish model”, would operate under a pay-as-you-go supplementary social security system. The reform will affect workers under the age of 35 by choice and newcomers to the labor market.

The employee will have an additional individual piggy bank, to which all contributions will be sent. Workers will be able to “invest this capital” of their choice and will always have access to it at the end of their working period. This will be in addition to the basic pension, which will continue to be funded by the state.

“I must note that a special article in the law will provide that, regardless of the investment process, the final pension cannot be lower than the one that corresponds to the total amount of employee contributions,” the prime minister said. According to him, the reformed system will operate from the beginning of next year.

He said the sustainability of social security was “threatened by a demographic decline” and stressed the need for “intergenerational solidarity.” He referred to the reluctance of the younger generation to work as insured, and also stressed that “the reduction of the additional pension in relation to the basic salary, unfortunately, has been happening for many years.”

True to the government’s claims that everything it does happens in other countries, Prime Minister Mitsotakis said the new system “operates in almost every country in the developed world.”

PS The prime minister forgot to mention that the supplementary and basic pensions, for which people have paid contributions throughout their working life, have been drastically cut due to the economic crisis caused by the mismanagement of PASOK and the New Democracy. That billions of euros disappeared from social security after the PSI bond exchange in March 2012 and that too many employers choose to hire part-time employees on paper and force them to work full-time to avoid social security contributions.

As far as “wage cuts” are concerned, didn’t the adoption of the new labor law, which employers began to enforce months before it became law, led to this? Not to mention private insurance companies that went bankrupt and people lost their money.

But with politicians, especially with the Greek, nothing can be done … They think that with the help of rhetoric they can cure Greek pathogenic diseases.





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