Contributions to Greek insurance funds for the years 2010-2013 dropped by 40% due to unemployment, wage devaluation, uninsured labor and the failure of freelancers to pay their premiums. A looming “black hole” of 21 billion euros was noted in this three-year period.As a result, current reserves do not exceed 4.5 billion euros compared to the 23 billion euros noted in 2009.

The Ministry of Labour, Social Security and Welfare is concerned about the plummeting revenues and this will be reflected by the actuarial studies of funds that have been imposed by the memorandum to be drawn up by September.

The new pension scheme to be drawn in November is expected to legislate a guaranteed pension of 360 euros as of January 1, 2015. This rate is based on studies and the IMF report that assesses that pension funds in Greece, “despite cuts, remain at very high levels.”

There are currently two factors threatening the insurance system:

* 350,000 pending applications for pensions and lump funds (according to data by the workers federation that exceed an estimated 1 billion euros.

* 2016 is considered a milestone year for the viability of the Greek insurance sector. Specifically, a recent actuarial study by the Workers Institute of the General Confederation of Greek Workers (INE GSEE) for 2013-2050 found that the social security system in Greece will need an additional 950 million euros to meet its obligations to insured workers, 1.88 billion euros for 2017, 2.14 billion euros for 2018 and so forth.