The bill on pension reform will be in the hands of the social partners by tomorrow, Labour Minister Marinos Mousiouttas told Politis. Under the bill's provisions, he said, pensions will rise over a five-year period by between 2% and 60%.
The Labour Advisory Board is due to meet tomorrow at 10am, where, according to Mousiouttas, the labour ministry will present the government's proposal in detail and provide the social partners with an explanatory note. The bill will then go to public consultation. The minister said he would also call journalists to a separate briefing to explain the bill's provisions in person. Suggestions from the social partners are expected to be submitted at a further meeting on 28 August.
Finance minister or ministry representative expected on 28 August
Mousiouttas said there is a strong likelihood that Finance Minister Makis Keravnos, or a representative of his ministry, will attend the 28 August meeting of the Labour Advisory Board to analyse in depth the provisions relating to the Social Insurance Fund's investment policy and to answer any questions concerning the finance ministry.
The criteria
Speaking previously on the podcast A Look at the Economy, Mousiouttas said the increases in pensions would be based on criteria including the level of workers' contributions, their periodicity, and the length of a person's working life. The minister added that there will be differentiations across all types of pensions, including old-age, disability and widowhood pensions, as well as in benefits, which are granted under more favourable arrangements for citizens. He said the reform also incorporates additional elements that will help increase pensions over time.
On the 12% actuarial reduction applied for early retirement, Mousiouttas said this would be lowered to below 10% through a horizontal application, though he stressed it could not be abolished altogether. In practice, he said, this would be equivalent to lowering the retirement age from 65 to 63.
The minister acknowledged that, even after the reform, some pensioners will continue to have incomes below the poverty line. The aim, he said, is for provident funds to function in a complementary role.
