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Announced interventions could open a “window” for changes in funding “piggy bank” contribute Unity Pensioners Primary pension and secondary pension.
The origin of the Solidarity Insurance Fund for Generations (AKAGE), which has been collecting solidarity contributions from pensioners, as well as funds from the state budget and EFKA since 2011. The purpose of setting up this “piggy bank” AKAGE is to cover future deficits in the insurance system.
It was recalled that during the memorandum period, AKAGE resources were used (except for the Supplementary Pension Fund, which stopped drawing resources in 2015, but contributions remained) due to a deficit resulting from a decrease in contribution income, an increase in unemployment and a decrease in wages.
This practice (i.e., the withdrawal of part of the reserves from the AKAGE piggy bank) was discontinued after 2018, as the recovery of economic activity gradually made up for the huge deficit in funds.
However, the annual solidarity contributions of pensioners continue to be collected and, in fact, this year AKAGE’s accounts (taking into account state and EFKA subsidies) will exceed the massive 2 billion euros for the first time.
The political leadership of the Ministry of Labor announced changes to the structure of solidarity contributions for pensioners from 2025.
The first intervention measure is that contributions will not be levied from the first euro, but may be levied between the lower and upper limits of each category of contributions.
This would reduce the burden on pensioners (and thus increase their net income), but would also reduce the social insurance institutions’ income from solidarity contributions.
According to reliable newsit.gr sources, the state will not commit to compensating AKAGE for the actual loss of revenues it suffers due to the reduction of the “reservoir” of solidarity contributions.
At the same time, the same source said that it cannot be ruled out that options on how to use ACE resources will be put on the table from 2025 or later.
It is worth noting that under the existing institutional framework, AKAGE’s resources are deposited in special accounts at the Bank of Greece, from which the main pension branch of EFKA can withdraw part of the funds in case of deficit, while the auxiliary pension branches in Greece cannot (a regulation adopted in 2015), but levy contributions on supplementary pensions.
article Pensions: Lower solidarity contributions for pensioners leads to changes in funding piggy banks Published on News IT .
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