Pension funds to merge
The government intends to proceed soon with the merging of pension funds in the first step of upcoming reforms of the social security sector, one of the most sensitive political issues in recent years, Labor Minister Savvas Tsitouridis told Sunday’s Kathimerini. He said that joining funds will help improve the efficiency of a social security system that is facing ballooning financial commitments. «We are proceeding at a fast rate with the merging of the funds and making better use of their wealth,» said Tsitouridis, without giving a date as to when this could take place. The government is expected soon to put together a committee – consisting of representatives from workers, employers, the government and opposition parties – that will record the condition of the current system and work on proposals for reforms in the sector. The conservative government has made it clear, however, that it does not intend to implement any changes during its current four-year term that ends in March 2008. Tsitouridis clarified that reforms will not affect pension rights as the government is appearing to tiptoe around the crucial issues. «We do not intend to lift the age required for a pension in a country that has a high qualifying age in comparison with other European countries. We will not reduce the pension payable… nor will we up contributions,» he said. An aging population has forced Greece – like other European states – to proceed with changes to the social security system. Greece’s pension system has been described by experts as being inequitable and complex. The dodging of contribution payments from businesses, particularly state enterprises, has compounded problems in the sector. «The performance of the funds is currently very low. There will be government initiatives before Easter,» the minister added, referring to the returns on money overseen by the funds. Currently the majority of money managed by pension funds has been placed in low-risk government bonds but this is likely to change, according to the minister.
