He said that it is found that the social partners are willing to discuss and dialogue, explaining that the actuarial study is expected in September.
The position of the Government is the targeted palliative intervention, which corrects some existing distortions, always according to the possibilities of the Social Insurance Fund, the Minister of Labor and Social Insurance, Yiannis Panagiotou, said on Friday. He was speaking after the meeting of the Social Insurance Council, at the Ministry, where the social partners participated, with the subject of discussion being the actuarial adjustment applied to early retirement.
The Minister, when asked if there is a first picture of the targeting, especially with regard to the years of contribution to the Social Insurance Fund, replied that the Government intends to move within the philosophy that operates the Social Insurance Fund, where for reasons retirement there are specific conditions, either for retirement at 65, or for early retirement at 63, which mainly have to do with the time span of contributions to the Fund. So, continued Mr. Panagiotou, through the proposal that is formulated, the time and duration of the contributions is taken into account as a central parameter. He noted that the scope of the Fund's capabilities will be evaluated and within that the time duration will be determined, which will be specific through the actuarial study that will be completed in September and presented to the social partners.
Mr. Panagiotou said that it was found that the social partners are willing for discussion and dialogue, explaining that the actuarial study is expected in September.
After the end of the meeting, Mr. Panagiotou stated that the Social Insurance Services presented the historical evolution of the institutional framework for the retirement limit and the applied regulations, while through the actuarial services of the International Labor Organization that support the Ministry of Labor and Social Insurance, a technical analysis of the actuarial adjustment was made with the presentation of elements and data through its application during the last decade.
The Minister added that a discussion was then held regarding the options for the next steps, where the views of the social partners were heard and he quoted the Government's position for targeted palliative intervention, which would correct certain existing distortions, in accordance with its capabilities Social Insurance Fund.
In this direction, Mr. Panagiotou continued, the actuarial study will be completed in September with the updated data of the Statistical Service after the last population census.
He pointed out that it is found that there is a willingness from the social partners for discussion and dialogue in this direction with the obviously condition of maintaining the viability of the Social Insurance Fund and maintaining the existing contributions at the current levels without any effects in relation to them.
Asked about the data presented to the social partners on behalf of the social insurances, the Minister said that what was presented has to do with how in the previous decade the possibility of retirement at the age of 63 with the actuarial reduction in this case has been utilized by workers and pensioners. These data, he continued, are complex and need analysis on how they will be utilized in order to enrich the information of all parties so that we can all evaluate the data together and make the appropriate decisions.
Asked if some initial conclusions are drawn from the evidence, Mr. Panagiotou stated that interesting conclusions emerge and have to do with the fact that employees who have the possibility of early retirement, despite being burdened with the actuarial reduction when they take advantage of this possibility to a significant extent choose to retire earlier and this is an interesting element.
When asked what he intends to do in case the actuarial study that will be done shows that what the Government is planning is not sustainable, Mr. Panagiotou said that all the steps of the Government that have to do either with the Social Insurance Fund, in particular, or with public finances, in general, are based on the need to observe fiscal discipline on the one hand, and the sustainability of the Fund on the other.
“The indications that we have according to the actuarial support we receive is that there are some specific and defined margins and within them we intend to move”, he said.