ΕΦΚΑ: which pensioners will receive retroactive payments of up to 50,000 euros in May

Retroactive payments of up to €50,000 are expected to be paid to around 13,000 retired bank employees in May. The amount of payments will be up to 15,000 euros, and in some cases up to 50,000 euros.

The amounts of these retroactive payments are calculated before the withholding of 20% tax, 6% health care contribution and solidarity contributions. Pensioners who retired with 36-40 years of insurance coverage will receive more retroactive benefits as they benefit from the improved replacement rates provided by the Vrutis Law.

These recalculations apply from October 1, 2019 onwards. That is, those who expect an increase in pension as a result of recalculation will receive it through retroactive payments over four years, 54 months until April (October 2019 – April 2024).

Recalculations of new pensions apply to those who retired with 30 years of service or more in the period from 13/5/2016 to 30/9/2019, and old pensions – to those who retired with more than 30 years of service before 12/5 /2016. The difference is that new pensioners will receive an increase as a result of pension recalculation, and old ones will receive an increase if the new recalculated pension is higher than the pension received as a result of the first recalculation under the Katrougalos law.

For example. Until 2016, an ETE pensioner with 38 years of insurance experience received a pension of 2,520 euros, and after the reduction, his basic pension was 1,805 euros. After recalculating pension earnings and increasing the replacement rate, this insured person will receive a basic pension of 2,012 euros with a monthly increase of 207 euros. His retroactive pension will be 13,248 euros gross and approximately 8,762.49 euros net.

Even more difficult is the recalculation of widows' pensions received under parallel insurance, since in these cases certain institutions do not issue information sheets and do not show widows how the amount they receive from the deceased spouse's pension was calculated.

Those awaiting recalculation also include pensioners from IKA, OAEE, or states that did not receive the increase they were entitled to due to improved replacement rates after 30 years of coverage. These are pensioners with sequential and parallel insurance, as well as those who worked and continue to work after retirement.

New pension payments with parallel insurance are on the way. At the same time, they will also be carried out in particularly complex cases, such as pensions with parallel insurance, since some funds do not have accurate data on the insurance years, and therefore recalculations are delayed, since each case is investigated separately.

This category includes retired NHS doctors, judicial officers, public sector engineers and judges, employees of public law entities for whom the recalculation would result in an increase in their funded pension from the contributions they have paid, and pensioners from former utility companies for which the recalculation was not completed, in accordance with the additional contributions they paid.

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