Auxiliary fund for young now managing 20 mln euros
The investment fund set up for young people’s supplementary pension income (TEKA) through their contributions has already enrolled 145,000 employees and 65,000 employers, according to the latest available figures from the Labor and Social Affairs Ministry.
The Hellenic Auxiliary Pensions Defined Contributions Fund has already exceeded targets and is now managing 20 million euros, the ministry said.
Registrations of employees and employers began in January 2022, and funds are collected through the electronic services of the Single Social Security Entity (EFKA).
Aimed at ensuring younger people get auxiliary pensions, TEKA is a legal body governed by public law and is responsible for investing the contributions.
The capital, comprising the accumulated contributions, is invested and the returns are once again credited to each insured person’s individual account.
At the end of a person’s worklife, the accumulated capital (the sum of the contributions and returns), translates into a life-long monthly auxiliary pension.
The new system also provides for disability and survivor’s pensions, while the individual contributions are guaranteed by the state.
TEKA was set up for people born after January 1, 2004 and for those entering the labor market for the first time.
Those eligible include applicants who are not obliged to have a supplementary pension, wage earners or freelance workers, and applicants who are no more than 35 years of age.
