Pension funds will require 10 bln by 2020

By Christina Kopsini

The Greek social security system is a ticking time bomb. Excluding the seamen’s and farmers’ pension funds (NAT and OGA respectively), the reserves of the rest don’t even top 4.5 billion euros, which is not enough to fund pensions after 2016, when the problem will explode.

The reduction in the public financing of the funds combined with the drop in the number of employed people and the major increase in pensioners have led to a social security predicament.

It is estimated that the pension system will require additional resources of 900 million euros in 2016, compared to budget provisions. This will climb to 1.88 billion euros for 2017, 2.15 billion euros for 2018, 2.40 billion euros for 2019 and 2.67 billion euros in 2020.

All forecasts lead to the conclusion that the clause must apply whereby they will be reduced to a level that does not allow for any deficits in social security fund budgets, even for main pensions. This is already set to start applying for auxiliary pensions and retirement lump sums from July 1.