Doubly cut or “frozen” pensions ATHENS 9.84

A double circular or “freeze” of pensions, in some cases, even widowhood, is photographed by a circular from the Deputy Minister of Labor, Panos Tsakloglou.

According to labor experts, without any relevant provision in the “Katrougalos law”, nor in the subsequent “Vroutsi law”, the Under-Secretary of Labor, with his circular, separates the national from the compensatory pension in terms of calculating the amount. final, noting that the beneficiary with two or more pensions should not receive a national pension from each source.

Thus, for retirees until May 13, 2016, the excess amount resulting from the complementary national pension is considered as a personal difference, its payment continues and is offset by any future increase (“freeze” of the pension).

However, from this date, the calculation of two or more pensions (for example old age and widowhood) is based on the fact that the national pension cannot be paid more than once to the same beneficiary.

Therefore, at this stage, the Ministry of Labor describes a reduction in pensions in the part of the national pension, even if it is a recipient of a widow’s pension, who after three years, if he receives his own pension, benefits from a reduction of the pension from 70% to 35% of the amount received by the deceased …

Indeed, according to the ‘Katruggalo law’, for the calculation of the widow’s pension, the national pension of the deceased is taken into account, contrary to what is provided for in the circular….

According to the Ministry of Labor, the circular has no retroactive effect. So what cut will not return in the past creating the issue of reimbursements for retirees for previous years.

The circular defines:

How to manage the national pension when there is an accumulation of several national pensions for identical or different reasons.

The introduction of the national pension (in addition to the contributory pension) aims to ensure a minimum amount of pension for each category of e-EFKA pensioners. In this spirit, the national pension is financed directly from the state budget. Therefore, due to the very philosophy and architecture of the national pension, it is not allowed to accumulate more than one national pension for the same person.

In practice, when an insured person is entitled to more than one pension for any reason (old age, invalidity or death), he is granted a single national pension which cannot exceed (individually or in sum national pensions for different reasons) the ceiling of a full rate national pension (384 EUR). This rule applies and applies regardless of the origin of the pension entitlement (own or by transfer) and to any combination of accumulation.

2. The maximum and minimum pension in the event of death

The total amount of transferable pensions paid to beneficiaries (spouse, children) due to the death of the retiree may not exceed the deceased’s pension. Consequently, the total amount of transferable pensions paid to eligible persons cannot be less than 360 euros.

The exceptions are orphans of both parents to whom the threshold is not shared but each receives at least the threshold.

3. The number of rights to a compensatory pension on the accumulation of pensions of different cause in the person of the deceased.

In the event of the death of a pensioner receiving two compensatory pensions, the right of beneficiaries to the deceased’s pension is uniform and indivisible, regardless of the number and nature of the rights transferred by the deceased.

4. For widow’s pensions after the first three years.

During the first three years following the death of the pensioner, the surviving spouse receives the full widow’s pension, which is equal to 70% of the deceased’s pension. The rules for the accumulation of the national pension, as analyzed above, are strictly applied.

At the end of the first three years, still in accordance with the provisions of the law, the pension is adjusted and paid for half (i.e. 35% of the deceased’s pension), if the survivor works or is self-employed or receives a pension from any other source. If the surviving spouse is at least 67% disabled, he will still receive the full widow’s pension, without deduction, for the duration of the disability.

With these data, according to the circular of the Ministry of Labor:

If when adjusting pensions already paid or payable on 12.05.2016, multiple amounts of national pensions have been calculated and the cumulative criterion has not been applied, then with the correct application of the rules, the final amount payable will not be differentiated for the beneficiary. Indeed, on the basis of the regularization provisions, any excess of € 384 must be presented for information purposes as a personal difference and continue to be paid to the beneficiary.

On the contrary, after this date in case of additional pensions which are adjusted, a national pension is granted, (b) in case after 13.05.2016 the same person receives a second pension from e-EFKA (by right or by transfer) the amount corresponding national pension will be calculated and then the accumulation rules will be applied, so that the total amount of the national pension granted does not exceed the total amount of the national pension (384 €).

Dimitris Kostakos

Maria D. Ervin