SOCIAL SECURITY

Auxiliary contributions guaranteed

auxiliary-contributions-guaranteed

The new pay-as-you-earn system of supplementary social security being introduced by the government will provide a guarantee of return for at least the amount of contributions retirees made during their working life.

One of the biggest changes being planned under the new legislation is that workers who fail to complete the minimum number of 15 years of coverage required will see their contributions returned, as opposed to the current system, where they lose it all.

The state will also guarantee that retirees will receive an auxiliary pension corresponding at least to the contributions they have made, even in case the investments by the auxiliary fund’s managers have led to negative returns.

The bill on the new pay-as-you-earn system of supplementary social security is ready and waiting its turn to be put to public consultation and submitted to Parliament after the new labor bill.

The competent Labor and Social Affairs Deputy Minister Panos Tsakloglou has completed the core and key details of the new auxiliary fund’s plan, while sources say that the three studies required (actuarial, macroeconomic and on public debt sustainability) are also ready.