April 26, 2024

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The three scenarios for new payments are Discount to Main (EAS), Gift, and Additional [πίνακας]

The three scenarios for new payments are Discount to Main (EAS), Gift, and Additional [πίνακας]

Retroactive payments of pension cuts from €750m to €2.3bn depending on the number of beneficiaries are now on the table for post-election government decisions.

The refund map contains refunds in amounts ranging from €600 for low pensioners to €4,000 for those claiming supplementary refunds, while state and EAS refunds are up to €6,500.

The question is firstly who will get it and secondly how and when.

The answers lie in three scenarios that will be discussed on the day after the elections by the new government, when the time comes to make a decision.

The payment scenarios for retrospective events, according to the most recent information compiled and published today by Inclusion Insurance and Annuities, are as follows:

1. Legislation should be enacted for the retroactive payment of pensioners who have sued, and so far all decisions have been ratified. Under this scenario, around 350,000 retirees from all funds that filed claims by July 2020 would receive a refund of up to €4,000 in pension cuts and supplementary gifts. The cost of refunds in this case is small, around €750 million and comes out comfortably even in one payment, from The remaining funds in the budget (about 900 million euros). This way, all pending lawsuits are terminated, the nuisance stops, and the beneficiaries get their money, without waiting to hear their turn.

2. To be retroactively reinstated by legislative regulations to all retirees, who have made reductions in supplementary pensions, supplementary pensions, main pensions and reductions from the EAS in respect of state pensions. This means that those who have not filed lawsuits will also receive refunds. In this case, the beneficiaries amount to 1.5 million pensioners and the cost of retroactive payments amounts to 2.3 billion euros. The amount is forbidden to any government, but the rules of law do not allow the separation of beneficiaries based on the criterion of who filed the lawsuit and who did not, when both have the same losses and the unconstitutionality of the reductions diagnosed by the Supreme Court without the presence of lawsuits by the pensioners. For this scenario, the prevailing solution – which has preoccupied government officials in the past – is to pay the retroactive effect in three or four annual installments of about 400 to 600 million euros annually for the years 2024, 2025, 2026 and 2027.

  1. They must be returned retroactively to those who have sued and to those who have not applied for a lump sum equal to the gift they received in the main pension with a cap of up to €800. The cost of the proposal is around 1.6 billion euros and approximately 1.5 million retirees are covered again. The problem with this scenario is in the state, since Resolution 1975/2021 of the plenary session of the Board of Auditors which was deemed irrevocably unconstitutional withholding the Retirees Solidarity Contribution (EAS) for the years 2017 and 2018 (regardless of whether from 2019 onwards. I considered it legal) automatically applies to all retirees with or without a lawsuit. The difference with those who have filed lawsuits is that they are entitled to a retroactive effect of up to 5 years, while the general rule for everyone is that they must recover amounts paid for 2017 and 2018. Because of this, the final amount is in 3the The scenario has been increased by €400m with EAS recoveries for all state pensioners.
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Pensions: a question and answer

Which state retirees are entitled to retroactively return EAS deductions? Is there a separation between before and after the Catrogalos Law and why?

The beneficiaries of retroactive deductions from EAS deductions for the years 2017 and 2018 are old state retirees, i.e. those who retired before the application of the Catrugalo Law (before 13/5/2016). The reason that retroactive damages have only been awarded for old judgments is that appeals to the Court of Auditors over the AP boycott were made prior to 2016, regardless of whether the first decision was made in 2017 and finally in 2021. So the concern of the old retirees . Recent retirees from 13/5/2016 onwards are not covered by retrospective pensions, on the one hand, because no appeal was filed, or in the event of one, no decision was issued, and on the other hand, because a subsequent decision of the Supreme Court (1975/2021) was passed and approved Detention based on the Catrugalo Act in both new (after May 2016) and old pensions, from 2019 onwards. In practice, old retirees in the country are retroactively entitled to EAS for the years 2017 and 2018, while as of 1/1/2019 the EAS withholding is effective and continues to be imposed on old and new retirees.

Annuities: Who pays EAS and is retroactively payable

The EAS is charged on main pensions or their aggregate (gross) over €1,400.

Refunds from the EAS according to the table detailed and published in the “Insurance and Pensions” listing amount to 6486€ for main pensions from 1425€ to 2815€ (gross).

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The vast majority of retirees in the country belong to this category. For the larger lump sums of main pensions received by pensioners on private payroll (judicial, university, NHS doctors, HEI-TEI professors), the retroactive amounts are over €7,000.

Private pensioners, with pensions of more than 1,400 euros, do not enjoy retroactive benefits from the EAS, because the Council of State considered it, along with other reductions of pensions of the first note (Law 3845/2010), to be constitutional.

Retroactive annuities up to €6,484 depending on the pension

In accordance with the table prepared by the “Insurance and Pensions” listing, the retroactive EAS to which retired state pensioners are entitled is organized as follows:

1. For a pensioner who receives an initial gross main pension of €2,815, €1,718 today before tax, has an EAS reservation of €282 per month and for a period of 23 months (February 2017 – December 2018) is retroactively entitled to €6,486.

  1. A pensioner who receives an initial gross pension of €2,435, €1,540 today before tax, has an EAS reservation of €219 per month and is retroactively entitled to €5,037.
  2. A pensioner who receives an initial gross pension of €2,245, €1,468 today before taxes, has an EAS reservation of €157 per month and is retroactively entitled to €3,611.

4. A pensioner who receives an initial gross main pension of €1,990, €1,346 today before taxes, has an EAS reservation of €119 per month and is retroactively entitled to €2,737.

  1. A pensioner who receives an initial gross main pension of €1,795, €1,316 today before tax, has an EAS reservation of €108 per month and is retroactively entitled to €2,484.
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6. A pensioner who receives an initial gross total pension of €1,665, €1,273 today before tax, has an EAS reservation of €50 per month and is retroactively entitled to €1,150.

  1. A pensioner who receives an initial gross main pension of €1,535, €1,197 today before taxes, has an EAS reservation of €46 per month and is retroactively entitled to €1,058.
  2. A pensioner who receives an initial gross main pension of €1,425, €1,144 today before tax, has an EAS reservation of €25 per month and is retroactively entitled to €575.

Retrospective for retirees of the old state of EAS

Original main article (1) Today’s project (2) EAS monthly booking
Retrospective 23 months 2,815 1,718 282
6,486 2,720 1,692 272
6,256 2,625 1,692 263
6,049 2,530 1,588 228
5,244 2,500 1,573 225
5,175 2,435 1,540 219
5,037 2,340 1,491 211
4,853 2,245 1,468 157
3,611 2,150 1,418 151
3,473 2,055 1,368 144
3,312 1,990 1,346 119
2,737 1,925 1,311 116
2,668 1,860 1,277 112
2,576 1,795 1,316 108
2,484 1,730 1,279 104
2,392 1,665 1,273 50
1,150 1,600 1,235 48
1,104 1,535 1,197 46
1,058 1,470 1,160 44
1,012 1,425 1,144 25

575

1- The total amount before cutting the note

2- The amount of the pension after all pre-tax deductions plus personal differences.

EAS is returned to retirees before May 2016, in accordance with the decision of the Audit Court

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