ECONOMY

Illegal pension cut cases seen costing 4.2 bln euros

illegal-pension-cut-cases-seen-costing-4-2-bln-euros

The case for the retroactive payment of bonuses to millions of pensioners is evolving into an epic judicial saga, with claims ranging according to the amount of each pension and the claim period. However, estimates see the total fiscal cost of the verdicts coming to around 4.2 billion euros a year.

Kathimerini understands that more than 50 court decisions have already been issued in favor of pensioners who took action against the illegal reductions imposed on pensions in 2012. Lawyers estimate that there are actually more than 80 such verdicts already, adding that the first few decisions on appeals have also started emerging, mainly with regard to cases filed before June 2015.

The focus has now shifted to the Council of State, which will have to resolve the conundrum of a law introduced in 2016 by then labor minister Giorgos Katrougalos.

However, there are many legal experts who believe that the decision of the country’s highest administrative court – which has been considerably delayed – will not put an end to the problem of retroactive pension payments, which means that the final solution will have to come from court decisions before they reach the Council of State.