ECONOMY

PM to reveal retroactive dues pay plan

pm-to-reveal-retroactive-dues-pay-plan

The government is set to announce in the new week how retroactive dues for the period from June 2015 to May 2016 will be paid out to pensioners, spokesman Stelios Petsas told Skai TV on Saturday. Kathimerini understands the first tranche may even come later this year.

According to Petsas, Prime Minister Kyriakos Mitsotakis will explain how the payments will be made, in compliance with a ruling by the Council of State earlier this month.

He added that the verdict will be horizontally implemented thereby affecting all pensioners concerned and not just those who successfully referred their case to the country’s main constitutional court. This means that other pensioners will not need to take additional legal action, Petsas added.

Sources told Kathimerini that the Finance Ministry is considering the disbursement this year or early in 2021 of the first installment of the retroactive dues to 2.5 million recipients, which may come to as much as 3.9 billion euros.

Petsas said the government is examining the cost but will uphold the court verdict, whose details will reveal the final amount the state must pay the pensioners for that 11-month period. The decision will also depend on the fiscal leeway available.