Pension reform reborn

Government seeks consensus in dialogue that resumes after a year

A year after presenting its original proposals for social security reform, which provoked a storm of public protests that led to the government's paralysis, an early party congress and a Cabinet reshuffle, government officials and labor leaders will sit down again today to discuss ways to keep the social security system solvent.

Last time, the government retreated in the face of claims that it was asking people to work longer and receive fewer benefits. This time, the government is going out of its way to seek consensus - so much so that there are fears that the very necessary reforms will be diluted to a dangerous extent.

Labor Minister Dimitris Reppas yesterday sprang the invitation on labor representatives, calling a meeting with the leadership of the General Confederation of Greek Labor (GSEE) at 10 a.m., with the civil servants' federation ADEDY at 11 a.m. and with employers' federations at 6 p.m. Reppas, a former government spokesman practiced in the art of putting a positive spin on difficult subjects, said he hoped the dialogue on pension reform would lead to «getting over the current political climate.» This was a reference to the angry exchanges between the government and opposition over claims of widespread corruption.

The government's desire to reach consensus with labor organizations, sources say, will lead to withdrawal of the idea to form professional funds, given the taboo against involving the private sector. Intervention in the current system will probably be limited to extreme cases, such as when pensions are higher than the last salary drawn, which public opinion is ready to accept.

Other points of the dialogue are expected to focus on maintaining the public nature of the social security system, increasing protection for working mothers, guaranteeing a minimum pension, keeping the transition period until December 31, 2007, and excluding current pensioners and farmers from of any proposed changes. Furthermore, the dialogue will involve a single set of regulations regarding social security and pensions and a raising of the retirement age to 65, with the simultaneous improvement of lower pensions.

GSEE has proposed that the government increase the amount of the State's contribution to employees social security payments. But it is not clear what National Economy and Finance Minister Nikos Christodoulakis will present as a counterproposal.