ECONOMY

Gov’t plans a single pension fund in 2015

The government is proceeding with the creation of a single pension fund bringing together all major social security funds, which will transform the Social Security Foundation (IKA-ETAM) into the National Pensions Organization.

The inclusion of the OPAD healthcare fund for public sector workers into IKA has already been announced, while IKA will also be responsible for collecting contributions to all social security funds as of July 1.

IKA will also incorporate all the social security funds of farmers as well as the self-employed, ranging from the scientists (lawyers, medical doctors, engineers, etc) of the ETAA fund to manufacturing professionals and traders of the OAEE fund.

If the plan survives the extensive dialogue and public consultation process, it will follow the Swedish model, which entails the complete restructuring of all pension benefits. The aim is that it would be active as of 2015. This, after all, is the year for the introduction of the basic pension, to amount to 360 euros per month. This pension will also be given to those who have reached the highest retirement age even if they have not fulfilled all the necessary conditions.