Greece’s new streamlined pensions: 11-18% slashes to 1,000-euro benefits

Pension concessions will be scrapped

Greece’s Radical Left Coalition (SYRIZA) government presented more tax and pension reforms to Greek Parliament. The findings of the 12-membered committee on insurance were presented to Labor Minister George Katrougalos on Thursday.The new system will be calculated according to social security contributions and the basic pension to be offered at 67 years. Supplementary benefits will also be offered and auxiliary pensions will be incorporated into the main pension, however the subsidization of auxiliary funds will end in a few years.

The steady slashing of pensions has been decided upon so that the weight of cuts don’t fall on future pensioners. 11% reductions to pensions over 1,000 euros up until 18% to the highest pensions over 2000 euros have been decided upon.

At any rate, it is certain that there will no longer be pension rates over 1,000 euros with state funding. For instance, a pensioner who received 2,500 euros in 2009 has already had six cutbacks to this rate and now receives 1,150 euros. In the future, the 150-euro rate will also be skimmed off that specific pensioners rate.