The multi-purpose draft bill of reforms for Greece to receive its next 1-billion euro in bailout loans was submitted to Parliament yesterday. It includes more than 200 provisions affecting a number of sectors.

One of the most contentious provisions of the bill is the consolidation and unification of auxiliary pension funds. It provides for a number of mergers, including those for armed forces personnel to join the main axiliary social security fund, ETEA. This will lead to lump sum retirement packages being slashed as much as half for some retirees. The government is worried that this will lead to friction in its relationship with the armed forces, especially after it failed to adopt a court ruling calling for the restoration of the wages and pensions of soldiers, sailors and airmen to pre-2012 levels.

It should be noted that there was a 5.2% reduction to ETEA pensions and the possibility of a further 3% slash to pensions in October 2014 for 1,062,000 ETEA pensioners.

The pensions of Parliament workers have also been targeted. The lump sum package for these employees was cut by 20% in March as it was considered too high standing at 80,000 euros. For instance, a qualified Parliament employee with 35 years of service could receive 40,000 euros from the welfare fund in addition to 150,000 euros.

The multi-purpose bill is expected to be voted in Parliament on August 8.