The Single Social Security Entity (EFKA) has decided to break into its investments in order to meet its increased obligations for auxiliary pensions and retroactive payments, due to a drop in revenues that has emerged partly because of the pandemic.
EFKA’s management is set to revise the budget of the single auxiliary pension fund (ETEAEP) – which joined e-EFKA with the latest reform in February – and is preparing to liquidate bonds worth 286 million euros out of the sum of €1.4 billion it owns in the common fund of the social security corporations managed by the Bank of Greece.
The liquidation of almost 20% of ETEAEP’s fortune comes as no surprise. The definitive decision was made on Thursday at a meeting of the entity’s board, but that intention had already been publicized by Labor and Social Security Minister Yiannis Vroutsis in Parliament.
On July 2 the increased auxiliary pensions will be paid out for a second month, followed a week later by the retroactive payments due.