ECONOMY

Proposed changes to social security

Labor and Social Insurance Andreas Loverdos yesterday announced a package of 10 measures for the reform of the social security system within the context of the dialogue with parties concerned. The most important points concern a plan for merging the many various social security funds into just three, one for salaried workers, one for the self-employed and one for farmers. Other measures proposed are for the establishment of a minimum pension, changes in auxiliary social security funds, the creation of tax incentives for greater coverage by social security for the employed, as well as incentives to extend the years worked before retirement. Loverdos stated that the year 2015, when the generation of those who entered the labor market in the mid-1970s will retire, is the time that the social security system in Greece is expected to go bust. He was speaking at a meeting of the experts’ committee appointed to hold the dialogue on the issue. The minister also stressed the need for a serious actuarial study toward making changes in various areas (such as reducing tax evasion, undeclared labor and excessive spending on healthcare), as well as on new sources of funding and for a fully computerized system.