Up to 20% reduction in pensions over 1,000 euros

The Labour ministry is introducing 4 changes in main and supplementary pensions and lump sums, targeting mainly pensions of over 1,000.

The details of the changes are as follows:

-       implementation of 5% -20% contribution in pensions (main and supplementary) of over 1,000 euros. The amount corresponding to the withholding in January will be divided in 4 installments (from February to May)

-       12% reduction in double pensions of over 1,300 euros starting from March. A circular will determine the number of installments to be withheld retroactively for 14 months

-       a new method of calculating the lump sums. The relevant law will come into effect from January 1, 2014, providing for a single model in all welfare funds

-       consolidations of supplementary funds and creation of individual accounts. Contributions and benefits will be linked within the supplementary funds, with possibilities of interventions, even on a quarterly basis. The agencies that are not viable will be required to join the Single Supplementary Pension Fund. The relevant deadline expires on February 28 and will not be extended.