A serious problem (legal loophole) that «blocked» the exit to retirement on favourable terms engineers, doctors and lawyers who are insured in parallel, solved by the provision contained in the bill on the modernisation of the EFKA.
What the provision provides
The provision allows engineers, doctors and lawyers to who were subject to two main insurance schemes by virtue of their status (e.g. the State and TSMEDE) until 31 December 2016 and paid double contributions, even though they had one job, to choose the basic institution under whose provisions they wish to retire.
We note that from 1η January 2017 lawyers and engineers are subject to the insurance of the e-EFKA as non-employees if they start exercising their profession at the competent tax office and as salaried employees or employees, respectively, if they are employed by a specific client or employer, respectively. In the latter case, an issue has arisen regarding the competent insurance institution as of 1.1.2017, especially for persons with «closed» books.
In the Katrougalos law there was no provision for the selection of the former institution, in which the insurance period from 01.01.2017 onwards will be deemed to have been completed, if the insured person did not choose to continue to be insured under double insurance, with the following consequences a question arises as to the establishment of his pension rights.
The loophole in the Katrougalos law
As explained by lawyer-expert in insurance matters, Dionysis Rizos, these insured persons, estimated to be around 10,000, lost the right to retire earlier under the more favourable scheme of the State, because of the loophole in the law, if they did not choose to continue with the double insurance, their main body was considered to be the former TSMEDE or the former TSAY.
That is, an engineer who is employed as an employee in the State and self-employed is entitled to a State pension as a father of a child in 2011 and can retire at the age of 52. However loses this right and will be compulsorily retired under the provisions of the TSMEDE providing for a pension at 62 with 40 years of pensionable service. Importantly, the opportunity to choose an institution is also given to prospective pensioners whose pension is pending. The issue concerns the pension conditions and not the increase in the pension to which those who are insured in parallel are entitled.
Right to choose a body
In particular, the proposed regulation gives insured persons the right to choose their former institution. In particular, by the insured person's application to e-EFKA, which must be submitted by 31 December 2022 and will go back to 1 January 2017, applicants will choose the former institution under whose provisions they will continue their insurance within the e-FSA. Applicants will be able to submit a request to select a former institution and persons who have already applied for a pension, in order to determine the competent service within the e-EFKA for processing their pension application, as well as insured persons who have opted or are opting for the voluntary payment of a second contribution, since for the latter the institution under whose provisions the employer pays the relevant contributions must also be determined.
It is noted that the choice of institution will not lead to a refund of additional contributions that had been paid or in search of additional contributions that had not been paid for the period from 1 January 2017 to the month of the declaration.
