ECONOMY

Auxiliary pension cuts to range from 2 to 30 percent

auxiliary-pension-cuts-to-range-from-2-to-30-percent

The government’s plan for the social security reform includes cuts to auxiliary pensions of 150 euros or more, or to lump sum pensions, so as to avert any cuts to main pensions “at all costs.”

In signing the third bailout deal the government agreed that it would no longer help finance the single auxiliary pension fund (ETEA) that has incorporated all auxiliary funds, so it is now seeking solutions to plug the 800-million-euro hole seen in 2016 through selling or utilizing the fund’s property, as well as through a one percentage point contribution hike.

If that does not prove to be enough, there will be some targeted, gradual cuts to auxiliary pensions. According to the plan, the reductions will start from 2 percent for pensions over 150 euros per months and reach up to 30 percent for pensions over 400 euros per month.