New system for auxiliary pensions from 2021

New system for auxiliary pensions from 2021

Young workers registering with the new capital-building branch of the auxiliary social security fund (ETEAEP) from 2021 will likely be able to choose at what age – between 60 and 70 years old – they want to receive their auxiliary pensions.

Although the committee of experts set up to study the details of the new system still has a number of issues to work through, the Labor Ministry appears to have decided on the main principles of the new mechanism. These principles will include delinking the need to get the main pension first, before collecting the auxiliary one.

Deputy Minister for Social Security Notis Mitarakis says that workers will be able to collect their auxiliary pensions at any point between 60 and 70 years of age. Those insured at ETEAEP will also be able to receive 25 percent of their social security savings in a lump sum and the remaining 75 percent in monthly payments.

Mitarakis also described to the 13-member committee of experts the main principles of the pension reform, including a provision that the current system of auxiliary pensions at ETEAEP will remain open until December 31, 2020, for those already in the labor market. Workers starting from January 2021 will automatically enter the new system.

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