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A bill on the professional plan for pension benefits in the public and wider public sector was approved today by the Council of Ministers. Covers all employees, who were hired or appointed after 1/10/2011 as well as those permanent employees who will be appointed for the first time in a position on or after the date of entry into force of the law.
In particular, a new special pension fund will be created, which will be financed by both the employer and the employee with an amount equal to 5% of the member's monthly pensionable earnings.
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The funding rate may be adjusted in the future following similar actuarial studies.
In his statements after the meeting of the Council of Ministers, the Minister of Finance, Konstantinos Petridis, said that the plan covers all employees who are indefinite employees in the state service but also in the wider public sector, in the local government, the special police officers who have He noted that the planning of the new occupational retirement plan is based on the philosophy of the operation of the provident funds.
< p>It is a plan that is not like the previous one which was valid before 2011, in which the earnings depended on the final salary but it is a plan that depends on the contributions, he added.
He stated that with it “The sustainability of public finances and the rights of the employee are ensured.
” So this backlog that existed after 2011 when the previous pension plan for new entrants was terminated is finally removed, “said the Minister of Finance .
He said that today's decision of the Council of Ministers closes a backlog that has existed since 2011 in the public and wider public service, adding that this plan is much more in the interest of the taxpayer than the previous one, which was in force before 2011, but ensures and the viability of the fund, which is to the benefit of the employee himself.
Asked how many people are affected, the Minister of Finance said that it is several tens of thousands.
Answering another question , stated that the plan will be implemented with the passage of the legislation but will be valid from October 1, 2011.
“And the contributions from the state itself will be submitted. We also have cases where some have retired and they will be covered. So we consider that it is a very good plan, which is the result of close consultation and agreement with all workers' organizations, PASYDY, SEK, PEO, police, educational organizations, OLTEK, POED and OELMEK and “all those who are concerned about these plans”, said the Minister of Finance.