Pensioners ‘hit hard’ with new Katrougalos legislation

Government wants to save €2.2 till 2019

Labour Minister George Katrougalos’s plan to reform the social security system will mainly fall on the shoulders of low pensioners. 80 percent of the total €2.2bln measures needed for the period 2016-19 will derive from cuts in pensions and scrapping benefits for pensioners in the low bracket. €900mln will be drawn from gradually abolishing the Social Solidarity Benefit for Pensioners (EKAS), with over 120,000 pensioners losing this benefit in 2016 in an effort to save €168mln.

Low and medium pensioners (over €1,300 gross per month) in the public sector will face a 40 percent slash in the ancillary pensions to save €361mln. Pensioners and employees will be hit with a number of measures affecting their real income including, a 12-15% cut in their lump sum, aimed at saving €127mln; a 32.5% reduction in the dividends of the Civil Servants Share Fund, projected to save €294mln; a cut in the maximum ceiling to €2,000 for personal pensions over €1,800, estimated to save €98mln.

Invalid pensioners between the 67 and 79% disability level will see large cuts in their incomes, as the new legislation provides the issuing of 4 levels of disability pensions: €384, €288, €192 and €153.