ECONOMY

High court decisions to overturn pensions law

high-court-decisions-to-overturn-pensions-law

The country’s main social security funds, EFKA and ETEAEP, should brace themselves for a heavy blow from the Council of State’s verdicts that sources say will deem a series of key clauses in the 2016 legislation known as the Katrougalos law as unconstitutional.

These will include cuts introduced to the pensions of 260,000 people as of June 2016, as they were made without actuarial studies. The verdicts will also raise questions about the new calculation method for pensions, based on replacement rates, as well as social security contributions by freelancers and self-employed professionals, as sources say the changes to Law 4387 contravene the Constitution.

On the other hand, another decision appears to put an end to retroactive claims by millions of pensioners, as the country’s highest administrative court apparently does not object to the amounts of old pensions.