The new cuts in pensions are unconstitutional

The Court of Auditors ruled as unconstitutional the provisions of the new pension memorandum bill providing for the fifth time since 2010 for the reduction of pensions by 5% to 10% since the beginning of the new year.

Also, other provisions of the bill were deemed incompatible with the Constitution and which will increase the retirement age by 2 years to 67 and eliminate Christmas, Easter and summer leave bonuses for pensioners.

Specifically for the pension cuts, the Court accepted the recommendation of consultant Antonis Katsarolis, and found that reducing pensions for the fifth consecutive time over a short period of time is contrary to a multitude of constitutional provisions.

The Court of Auditors, which consisted of 30 judges, advised that the provisions for reductions in pensions and cuts in bonuses is contrary to Articles 2, 4, 22 and 25 of the Constitution, guaranteeing the respect and protection of human dignity, the principle of equality and proportionality and the protection of labour.

The consultants said unanimously that it is unconstitutional to cut the Christmas, Easter, and summer holiday bonuses from the new year onwards. The reduction of pensions was also deemed unconstitutional, as it addresses the issue of proportionality without any no criteria and is implemented in an unfair manner. The same position was expressed about the age increase of the EKAS beneficiaries from the current 60 to 65 starting on 1.1.2013.

What was deemed constitutional

The Court of Auditors ruled in favor of the cut in pensions of unmarried and divorced daughters of deceased pensioners. According to the bill, the maximum monthly pension will amount to 720 euros if their annual income does not exceed 8,640 euros. The arrangements regarding pension issues for MPs were considered legitimate.

The Court of Auditors refers to a “selective, unilateral and permanent burden” for employees, pensioners in this case, compared to other groups of people who evade taxes or contributions. It describes "this practice that creates unequal treatment of individuals in society as an easy and quick way of balancing the economic data.”