Pensions: Small increases for very low pensions, large increases for high pensions

The pension increases to be paid as part of the February payment on January 24, 26, or 27 present the following paradox. For low pensions of 455 euros, the increases will be up to 35 euros, while for high pensions of 2,580 euros, the increase will reach 200 euros. Still pending are the EAS refunds for public-sector retirees for the years 2017 and 2018, as well as the 11-month retroactive payments for supplementary pensions and bonuses.

There is a high probability that these amounts will be paid to retirees, and the cost is also high, reaching 2.2 billion euros.

• One of the options being considered by relevant government officials is to pay the amounts retroactively in three to five annual installments.
• Another option is to strictly comply with the law and the latest decision of the Council of State and to grant retroactive payments only to those retirees who have filed lawsuits. In this case, the cost would not exceed 800 million euros (for supplementary pensions, bonuses, and the Agricultural Insurance Fund).

The moral issue is that the retirees who did not file appeals did so because they believed they were entitled to retroactive payments and without filing lawsuits. The fate of the retroactive payments, however, will be decided later this year, and, in fact, the issue will be clarified in the first quarter, when the government will have the final data on the economy’s performance in 2022 and the budget outlook for 2023.

2023 brings even more surprises. The retirement age limits are changing for those who have not yet earned the right to a pension, while for public-sector employees, retirement with a reduced pension will henceforth require reaching the age of 62. Excluded are men and women who had 25 years of service in 2010, 2011, and 2012 and who reached ages 55 through 60 by 2022.

• The pension increases will be paid at the end of January 2023 at a rate of 7.75% and will affect approximately 1,750,000 pensioners.

The increases for those receiving a monthly primary pension ranging from 500 to 2,500 euros range from 39 to 194 euros and depend on whether or not they have a personal adjustment.

For example, a retiree who retired by 2022 with a pension of 1,000 euros will receive, at the end of January, a regular increase of 77.5 euros for the February pension and a retroactive increase of another 77.5 euros for the January pension. Their monthly pension will be 1,077.5 euros, and the additional 77.5 euros will be credited to them only once as a retroactive increase for the January pension. If he has a personal difference that brings his total to 1,000 euros (e.g., €880 plus €120 in personal difference), then the €77.50 increase will be offset against the €120, and the personal difference will be reduced to €42.50. This offset will also apply to the retroactive pension increase for January. In this case, the retiree will not see an increase in their take-home pay, but the benefit will be a reduction of the personal difference to 42.5 euros. The increase is granted:

1 The base amount of the national pension, which has increased from 384 euros to 413.76 euros for 20 years of insurance coverage and to 372.38 euros (from 345.6 euros) for 15 years, as well as the contributory pension for those who were already retired in 2022 and those who had applied to begin receiving their pension by December 31, 2022.

2 The amount of the national pension for new retirees as of January 1, 2023 (473.16 euros for 20 years of service and 372.38 euros for 15 years of service). The contributory pension for new retirees as of January 1, 2023, will not increase by 7.75%, as it will be calculated using higher pensionable earnings that will incorporate the high inflation rate of 2022.

3 For the pensions of uninsured elderly OGA beneficiaries and the benefits for the uninsured provided by OPEC.

Disability benefits (based on the length of insurance coverage) granted by EFKA to those who also receive a disability pension.

Who is allowed to go out? retirement next year

More than 180,000 insured individuals will reach the age thresholds of under 67 and under 62 in 2023 and will be eligible to receive a pension. The following groups will retire from the public sector in 2023:

1 Insured employees bornin the second half of 1961 with 25 years of service as of December 31, 2010, who will have completed a total of 35 years of service by December 31, 2018 (the required age limit is 60 years and 6 months for retirement in 2023).

2 Insured employees bornin the second half of 1961 with 25 years of service as of December 31, 2011, who will have completed a total of 36 years of service by December 31, 2019 (required age: 60 years and 6 months).

3 Insured employees bornin the second half of 1961 with 25 years of service as of December 31, 2010, who will have completed a total of 35 years of service by December 31, 2019 (required age: 60 years and 6 months).

4 Insured PersonsEmployees born on or before September 1960 with 25 years of service as of December 31, 2012, who will have completed a total of 37 years of service by December 31, 2019 (required age: 60 years and 11 months).

»The following groups will be eligible for retirement from IKA in 2023:

1 Women—mothers who were insured before 1993 and were born on or before March 1963, with 5,500 days of insurance coverage as of December 31, 2011, and a child born in 1993 or later (required age: 60 years and 9 months).

2 Women who, as of December 31, 2010, had accumulated a total of 4,500 days of insurance coverage, of which 3,600 were in arduous and unhealthy occupations, and of those, 1,000 were in arduous occupations during the last 17 years prior to retirement, and who were born in 1968 (required age: 55).

3 Women who, as of December 31, 2011, had accumulated a total of 4,500 days of insurance coverage, of which 3,600 were in arduous and unhealthy occupations, and of those, 1,000 were in arduous occupations during the last 17 years prior to retirement, and who were born in 1967 (required age: 56).

4 Women who, as of December 31, 2012, had accumulated a total of 4,500 days of insurance coverage, of which 3,600 in arduous and unhealthy work, including 1,000 days of arduous work during the last 17 years prior to retirement, and who were born in 1966 (required age: 57).

2023 PENSION INCREASES BASED ON YEARS OF INSURANCE COVERAGE

(Average per Fund – Gross pension amounts)

» Notes: The increase is offset in cases where pensioners have positive personal differences. If there is a remaining personal balance after the offset, the pension will not increase. If the personal balance is reduced to zero, the pension will increase.

NEW NATIONAL PENSION AMOUNTS EFFECTIVE JANUARY 1, 2023

AGE REQUIREMENTS FOR A FULL PUBLIC SECTOR PENSION

* With 25 years of service as of 2010

** With 25 years of service as of 2010 and 2011

 FULL PENSION FOR MOTHERS FROM IKA

(insured through December 31, 1992)