December 1, 2024

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Insurance: The Six New Measures

Insurance: The Six New Measures

Interventions are being processed, including those relating to the personal difference allowance, the solidarity contribution and widows’ pensions. Ministry of Labor It is expected to be integrated into a small device. insurance invoice.

The aim is to support the approximately 750,000 pensioners who are expected to remain stuck in personal disputes in 2025. This means that they will not receive any pension increases in the new year. This will be the third consecutive loss of pension increases, as the government seeks to reduce the size of the problem by paying the corresponding premium, as has happened in the past two years. At the same time, changes being prepared on key issues such as the solidarity contribution are of particular interest to the new political leadership of the Ministry of Labour. The regulation being promoted is expected to maintain the EAS system, but the specific levy will not be imposed from the first euro, as has been the case until now.

In the field of widows’ pensions, the previous provision providing for a 50% reduction in specific benefits after three years will be maintained. However, failure to implement this measure for beneficiaries coming from the private sector automatically leads to a search for retroactive amounts as having been paid unjustly. The new provision being promoted is expected to have significant reductions in terms of the return of refunds (which concern around 8,500 beneficiaries), if it is implemented once.

In more detail, the new insurance bill – which is being worked out to be ready by the end of this month, but is likely to be presented to Parliament in early autumn – will include the following interventions:

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1. Personal difference: This is an exceptional financial aid that concerns the 750,000 pensioners who, due to this specific measure, will also lose their pension increase in 2025. The upper limit that is expected to be set again for the payment of said aid will be 1,600 euros of gross earnings. The allowance will be divided into two or three categories, depending on the final choice made by the financial officers, and will range from 100 to 250 euros.

2. Solidarity contribution for retirees: It concerns more than 700,000 beneficiaries, who are expected to continue paying this tax, but in a different way. Essentially, the EAS will not be a contribution resulting from the first euro, but will only be activated for amounts above 1,400 euros, which is currently the minimum. But there will be a reform of the scales (today they range from 3% to 10%, depending on the amount of monthly income from pensions), because the measure that will be applied must be fiscally neutral.

3. widow’s pensionThe activation of the text providing for a 50% reduction in the aforementioned aid to private sector beneficiaries should be taken for granted. In order to limit the reactions that may arise, care will be taken to ensure that the requested amounts are paid retroactively with significant discounts. In fact, if these amounts are returned to public funds in one go, the possibility of a discount ranging from 50% to 80% at the highest level is being considered.

4. EFKA – Unified Benefits Regulation: There will be a unification of social welfare benefits and benefits in kind. Stricter grant conditions will be imposed, which are expected to lead to benefit cuts, especially for beneficiaries of the former “noble funds”, i.e. OTE, PPC, banks and DEKO.

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5. Retirees with disabilities: The loophole created in the previous insurance bill passed last December will be corrected. Thus, disabled pensioners who wish to work will not have to stop working and re-employ themselves in order to receive their disability pension, as is paradoxically the case today…

6. TikaThe new microinsurance bill is expected to include a special provision regarding the Sub-Capital Insurance Fund (TIKA), which will allow the insured to make use of its contributions. Essentially, any existing restrictions on the main compulsory insurance funds and the remaining assistance will be lifted.

imaginary years

On the contrary, the intervention intended to recognize fictitious years, on the way to retirement, is being pushed back. Basically, the objective set is to limit the categories of fictitious years from 12, which are today, to five. It is worth noting that for the State the categories can reach 12, while seven categories are reserved for those who wish to use fictitious years and come from the private sector. It is also possible that the retroactive recognition of fictitious time, a condition for entitlement to the pension right, will not be allowed for the insurance time and age limits that were in force until 2012. The objective set is to simplify the system, but also to make it one degree more difficult to retire early. However, the process in question is considered to need further processing and is likely to be moved to the end of the current year or the beginning of the following year.

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It is noted that the fictitious years are mainly used from the beneficiary’s military service and from his studies, while the time of supported unemployment and supported illness, if any, is usually used on a case-by-case basis.