Thursday December 18, 2014 Search
Weather | Athens
17o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Updated bailout agreement sees possible adjustments to retirement age, payouts

The Greek government may soon have to increase the country’s retirement age and slash pensions further, according to an updated copy of its bailout terms seen by Sunday’s Kathimerini.

The Memorandum of Economic and Financial Policies (MEFP) prepared by the International Monetary Fund commits Athens to producing by September this year an actuarial report on the Greek pension system. This will include auxiliary pension funds. This report will then form the basis for negotiations with the troika on retirement ages as well as the size of pensions and lump sum payments to retirees.

The timeline set out in the MEFP foresees Greece and the troika agreeing on a new formula by October this year and the new legislation governing pensions being voted through Parliament in November so it can begin to apply from January 1, 2015.

This would be the second major overhaul of Greece’s pension system in about four years. In May 2010, Parliament approved legislation that raised retirement ages, currently at 65, introduced disincentives for early retirement and curtailed pensions. Since then, though, pensions have been slashed several more times.

In March, the Labor Ministry’s Ilios system showed there to be 2.65 million pensioners in Greece, which spent a total of 6.8 billion euros on pensions in the first quarter of the year. The average monthly retirement pay, including supplementary pensions, came to 941.47 euros. The average basic pension is roughly 700 euros per month.

According to the MEFP, the government will also have to remove all the parafiscal charges that currently help pension funds raise revenues. This includes scrapping the “aggeliosimo,” which the IMF refers to as an advertising nuisance tax, that firms have to pay when they place an ad in the media.

The updated bailout agreement does not call for any new spending cuts in 2014 but sets public expenditure at the same level as 2013. This means, however, that the government will have to adjust its budget as it had foreseen spending 320 million euros more than the previous year.

ekathimerini.com , Saturday April 5, 2014 (17:52)  
Universities ask state to reverse mobility scheme
Thessaloniki metro off track again
Little cheer for gov´t in first presidential ballot as Dimas draws 160 votes
Greek Parliament fails to elect president in first ballot
Stores will open on Dec 28, but traders aren’t too happy about it
It has emerged that commercial stores will be officially allowed to open on the last Sunday of the year, December 28, as the Development Ministry submitted an amendment to its multi-bill in ...
More Britons and Americans eyeing Greece for vacations
Greece enjoyed the fifth-biggest increase in Google searches from the UK market this year in the category of emerging holiday destinations, according to a chart published by the world’s bigg...
Inside Business
BASKETBALL
Pappas helps Greens overcome Aris
An impressive Nikos Pappas averted an upset by Aris and ensured Panathinaikos retained its perfect record on Tuesday, one day after Olympiakos thrashed Panionios at Nea Smyrni for the Basket...
´Wee Jay´ and idol Georgios Samaras receive Greek sports journalists´ award at Athens gala
A 10-year-old Irish fan of Greek striker Georgios Samaras was in Athens on Monday at the invitation of the Greek Sports Journalists' Association, which honored outstanding achievements in sp...
Inside Sports
To keep Turkey democratic, tie it closer to EU
Sunday's arrest of two dozen policemen and journalists in Turkey, including the editor of the country's most popular newspaper and a producer of television dramas, was just the latest eviden...
COMMENTARY
Greek stocks and bonds suggest government may fall
Greek lawmakers will vote Wednesday on whether to back Prime Minister Antonis Samaras's choice for a new head of state. The collective wisdom of financial markets suggests his gambit may fai...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Stores will open on Dec 28, but traders aren’t too happy about it
2. More Britons and Americans eyeing Greece for vacations
3. Vodafone and Wind to bid for Forthnet
4. Credit line conditions laid out
5. Bourse index recovers some lost ground
6. Piraeus ambitions one step closer as China signs Balkan bullet train deal
more news
Today
This Week
1. Leftist SYRIZA leading ND by 3.2 pct, survey shows
2. High stakes
3. The secret is out
4. Poll gives SYRIZA clear lead
5. Greek political fallout a worry, but financial contagion seen limited
6. Samaras seeks Parliament’s backing to stop SYRIZA threat
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. East Europe scrambles for energy after Putin kills South Stream
6. Anarchist Nikos Romanos ends hunger strike
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.