The existing social security system in Greece is characterized by legal and administrative fragmentation along with a complicated institutional structure, adversely affecting its effective operation. It doesn’t treat all insured parties on equal terms, while discrepancies arise in the benefits provided.
A major aim of the Pension Reform under way is the unification - for the first time - of rules applicable to all parties, so as to develop a fair and rational social security system characterized by stability and functionality.
This will be done in a way so as for the restricted resources of funds to be properly allocated without further pension reductions, enabling the policy currently promoted to ensure the sustainability of the social security system.
The new legislation will be applied to ensure control, cost reduction and deficit shrinking, which deteriorated due to the prolonged financial crisis. Part of this venture will be the development of the funds’ movable and immovable property in order to attain immediate financial benefit.
The reform of the social security system is based on a fully documented actuarial report, which is based on new economic data. Within this framework, we will pursue the unification of the many existing social security funds into a single authority.
This single authority will strengthen the sustainability of funds, given the existing lack of united supervision and revenue-cost systems, while it will reinforce the fight against tax evasion and uninsured work.
The proposed reform sees to the non-reduction of pensions – both main pensions and additional annuities – so as to protect the elderly and alleviate new employees against unfair and oversized contributions.