May 13, 2024

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More than a billion euros come retroactively to 6 categories of retirees

More than a billion euros come retroactively to 6 categories of retirees

pensionsRetroactive package More than a billion euros are waiting for 6 categories of pensioners, according to a publication by the Free Press newspaper.

From 11 months of reductions to supplementary pensions.
Of gift items.
Delaying the recalculation of pensions.
From increases due to heavy stamps to new pensions for municipal employees.
From the return of the pensioners' solidarity contribution (EAS) for 2017 and 2028 for state pensioners who receive more than €1,400.
From the Court of Auditors’ ruling to increase widows’ pensions issued after 2016 to 70% of the deceased’s original pension instead of 70% of the recalculated and lower pension.

Beneficiaries of retroactive benefits are all retirees who belong to one of the six categories mentioned above, estimated at approximately 1.5 million. However, who will receive it, when and in what way has not yet been determined, as part of the refunds relates to the implementation of court decisions, and the other part relates to EFKA's delay in implementing the legislative provisions passed (re-accounts, heavy violations) over the air etc..a ). The third part concerns retirees who did not go to court.

Retroactively “determined” are those for which court rulings (SteE and Court of Audit) have been made and relate to 11-month refunds to the assistant, refunds under the EAS and also the adjustment of widows' pensions.

But despite the rulings, the government did not refund the amounts, citing high costs. However, for retroactive pensions that have already been granted, the government is obligated to provide a solution and for retirees to get their money.

Especially for the retroactive effect in aid and EAS, the cost is estimated at around €700 million. About 370,000 pensioners are claiming retroactive benefits in auxiliary pensions with lawsuits, with the cost of recovery amounting to about 300 million euros, while the recovery of the EAS for two years (2017 and 2018) concerns 350,000 state pensioners at a cost of 400 million euros.

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The confusion that arose retroactively to the court rulings is temporary until the decision on the gifts is issued, which will be considered by the Special Supreme Court next April. Until the decision on the grants is issued, adjudication of the appeals submitted by about 370,000 pensioners, who are demanding retroactive grants, and the return of reductions in supplementary pensions for the 11 months from June 2015 to May 2016, is frozen. The case is not related to the reductions that were imposed on supplementary pensions. , which means that even if the dirham refuses to return the gifts, pensioners must receive their supplementary pensions retroactively.

The gifts reached the special court from the Supreme Court, which rejected an appeal by a pensioner from the Bank of Greece and disagreed with the decisions of the Council of State, which ruled that the cancellation of the gifts was unconstitutional.
Editorial: Decision on gifts to pursuers on April 17

The new trial for gifts is scheduled to be held next April 17, this time by the special court, after the Supreme Court did not approve of the decisions of the State Council (2287-2288/2015) which considered the cancellation of gifts unconstitutional and pensioners have the right to take 11 months retroactively. From their gifts. It is noteworthy that the Supreme Court, in a new decision (in 1342/2023), decided to completely abolish gifts to the assistant to EFKA pensioners after the Catrogallo Law. This decision does not cancel the retroactive gifts dated June 11, 2015 – May 2016, and above all, it did not prevent the issuance of positive decisions from the courts of first instance, until the gifts were referred by the Supreme Court to the Special Court and the courts of first instance suspended the issuance of new decisions.

The reason why the Supreme Court, with its Decision 1509/2023, came in complete opposition to the plenary session of the Council of State is that it rejected a lawsuit filed by a pensioner from the Bank of Greece who demands from the insurance institution of the Bank of Greece to return all gifts since 2013 and thereafter in a total amount of 16,162 euros.

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On the occasion of this case, A.B. said: The issue of canceling gifts is referred for a new ruling to the Supreme Special Court.

However, in his decision, A.B. It states that the cancellation of gifts from the ancillary entity may be permissible as long as “the decent living of pensioners is not at risk”, while noting in particular for Bank of Greece pensioners that after the cancellation of gifts, the amount of pension for Bank of Greece pensioners affected by the regulation remains The controversial issue is larger than the average main and supplementary pension granted by IKA-ETAM and there is no doubt about putting their decent livelihood at risk.

Summary: Payment scenarios on the table

As for the retroactive payment of dues, according to the information contained in the “Insurance and Pensions” appendix, alternative scenarios are being considered and it is expected that the government will open its papers when the new decision of the Special Supreme Court regarding the fate of the gifts is issued. The cycle of judicial decisions is at the highest level.

Retroactive payment scenarios include 5 versions:

A one-off payment of between €600 and €800 to pensioners who have not gone to court and who have pending trials to wait for retrospective payments to be issued to them by the courts. The cost is estimated at 1.4 billion euros. If the gifts leave, the cost drops to 900 million euros.
Retroactive payment to retirees who filed lawsuits and no one else. Under this scenario, about 370,000 pensioners from all funds who had filed claims by July 2020 would receive amounts of up to €4,000 in supplementary pension reductions and gifts, with the cost of recoveries amounting to about €750 million.
Retrospective refunds for all pensioners with supplementary pension reductions, supplementary gifts, main pension gifts and EAS reductions in relation to state pensioners. In this case, everyone, i.e. 1.5 million retirees, receives it retroactively. The cost amounts to 2.3 billion euros. If something like this is decided, they will be paid in installments, perhaps over 5 years.
That funds be refunded retrospectively to those who have brought lawsuits in relation to private sector pensioners and that they be paid retrospectively by the EAS to all government pensioners. The cost is approximately 700 million euros without gifts.
They are returned retrospectively only to those who have filed lawsuits for supplementary benefits, and if the AED decides in favor of gifts, 11 months' gifts will be returned to all pensioners without exception, at a cost of more than €1.5 billion.

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Q&A Who are the pensioners who receive their pensions?

The EFKA was until recently making retrospective payments of pensions and supplementary gifts to pensioners who were justified by lower court decisions. At least until next April, when the new trial in the gifts case will be held in the Special Court (referred by the Supreme Court), the lower courts have suspended adjudication of ex post facto cases. However, in cases where court decisions are in the hands of pensioners and they refer them to the EFKA, the legal service gives him an order to make payments retroactively. The benefits granted are also paid retroactively for 3, 4 or even 5 years. For 1,000 euros retrospectively, the interest for 5 years is around 400 euros, while for 3,000 euros and 4,000 euros retrospectively, the interest exceeds 1,200 euros.