Troika wants 30% slashes to Greece’s already butchered pensions

Delia vs. Pensioners – The first sacrificial slaughters brought to the altar of the bailout god

Greece’s creditors are eyeing further slashes to already butchered pensions that have been scissored during previous bailout deals. IMF Chief Delia Velculescu – obsessed with further cuts to Greece’s low pensions – spearheads the plan for social security reforms that include pension cuts of as much as 30%. It doesn’t stop here with sources pointing to further 10% slashes if the recession continues. Wages, too, will be brought to the fiscal sacrificial altar with new recruits in the private sector to see their basic wage drop by 5-10% from 586 euros.

Greek negotiators already have their backs cornered to a wall as far as pension slashes are concerned. The zero clause in social security reform is a pre-requisite to the new deal with creditors that Prime Minister Alexis Tsipras had signed at the Euro Summit.

CRY

Sweeping pension and benefits cuts will be implemented from January 1, 2016 after a voting session on October 31, 2015. Interventions include:

* Linking contributions and earnings and harmonizing contributions, retirement regulations and funds. Supplementary pension systems will be rationalized with the goal of lifting the retirement age. Undeclared work will be lifted and there will be reduction to a number of pensions from special funds.

* Applying the changes that had been announced by former socialist PASOK health minister Andreas Loverdos who had created a scheme for a national pension of just 360 euros.

* Reductions in benefits imposed by the abolition of non-financial charges with the share funds dividends from the public sector being the first victims of the new regulations while lawyers and engeineers will also see their benefits reduced if they don’t increase contributions.

* Mothers with minors, Social Security Fund (IKA) insured with low benefits, widows/widowers and the disabled will see cuts of as much as 35-50% of their benefits and will receive 250-350 euros per month until the age of 67 years. Pensioners who receive the minimum rates will slowly see a reduction of their solidarity fund pensions by 64% before it is abolished altogether.

PENSION