Supplementary Pensions: What the EAS repeal plan means (tables)

Supplementary Pensions: What the EAS repeal plan means (tables)
Supplementary Pensions: What the EAS repeal plan means (tables)
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The main aim of the ministry is to limit the EAS to the main pensions, because there it is found that, due to the reservation, the pensioners end up getting a smaller increase or even a reduction instead of an increase in the pension. However, the goal of reducing the deduction with a fiscally neutral result, i.e. collecting the same amounts with smaller deductions, cannot be achieved. For this reason, the scenario of abolishing the EAS from the supplementary and reducing the EAS in the main pensions is on the table (see pages 4-5).

The eventual abolition of the supplementary pension will mean increases of €10 to €71 per month or from €120 to €852 per year for around 400,000 old and new (after 1/1/2015) pensioners receiving an initial mixed supplementary pension over 300 euros.

THE increases that pensioners would receive in the supplementary pensions with the abolition of the EAS would be the first after a 15-year period in which the supplementary pensions had experienced consecutive reductions due to the Memoranda.

Before the Memoranda, the average supplementary pension was around 300 euros, while after the cuts and the changes I made to the way they are calculated, the average supplementary pension is around 170 euros.

The EAS reservation is imposed on ancillaries on a “10-point” scale, starting with 3% for marriages between 300 and 350 euros and reaching 10% for ancillaries over 650 euros.

The EAS reservation scale in the auxiliary is 3% from 300 to 350 euros, 4% from 350 to 400 euros, 5% from 400 to 450 euros, 6% from 450 to 500 euros, 7% from 500 to 550 euros, 8% from 550 to 600 euros, 9% from 600 to 650 euros and 10% from 650 euros and above.

The reservation does not show up in old pensioners’ newsletters, as all memorial cuts have been removed and pensioners only see the pension as it is after pre-sickness and pre-tax reductions have been deducted.

Thus, an old IKA pensioner who received a supplement of 455 euros in the pension information will not see the original gross supplement of 455 euros anywhere, but the pension as it has been formed after the reductions of the Memoranda and before the sickness contribution and the tax. In the case of the initial supplement of 455 euros, the pensioner sees 248 euros, which is the new “mixed” pension, which is 233 euros after the sickness contribution and before tax.

The EAS reduction in the said auxiliary is 27 euros and in order to see it the pensioner should print the annual statement of the AADE with the analysis of his incomes and deductions, which is automatically submitted with the tax return.

On the other hand, young pensioners, because they generally get less supplementary than the old ones, the only reduction they have is from the EAS and from the sickness contribution, both of which are shown in their information notes.

The article is in Greek

Tags: Supplementary Pensions EAS repeal plan means tables

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