The range of supplementary pension cuts was the main issue of the discussion between Labour Minister Giorgos Katrougalos and the representatives of the institutions after lenders’ refusal to accept any increase in insurance contributions.

The Labor Ministry was hoping that the deficit of Single Auxiliary Social Security Fund will be covered by raising contributions, cutting pensions and exploiting part of its property.

After this negative development, the lenders have asked the fiscal gap of 700 million euros to be covered by reducing the supplementary pensions.

Given that the annual spending cost of the Single Auxiliary Social Security Fund for the payment of current pensions and part of retrospectively payments amounts to 3 billion euros, the supplementary pension cuts should range between 21% and 23%.