Retirees: December increases and retrospectives



Next month and before the Christmas holidays with the payment of January pensions, the Ministry of Labor plans to pay to 190,000 retirees – who have more than 30 pensionable years – the increases in pensions along with the retroactive ones, resulting from the implementation of the new It is emphasized that the increases and the retroactive payments of 16 months from 1/9/2019 will be received in one installment by the pensioners in all the insurance funds, with an exit date after 13/5/2016 (publication of Katrougalos law) who have more than 30 years of insurance. These retirees will receive the full increase, while those with a personal difference will receive the increase above the amount of their personal difference. That is, the old retirees who have left before the passage of the Katruggalo law will have to a large extent only an accounting impact on their pension, as the entitled increase will be absorbed by the personal difference. “TA NEA” guide with questions – answers exclusively for the increases and retroactives of the Vroutsis law that will be paid next month. Q: Why will these increases and retrospectives be given to 190,000 retirees? which was voted last February but will be implemented in December this year with a significant delay due to the pandemic. With a relevant provision of the law, the replacement rates of the main pensions are increased – after a relevant decision of the CoF. With the implementation of the higher replacement rates, the new pensions (from May 2016) will have direct calculation and direct increases, while the old ones (before May 2016) will have a recalculation with increases compared to the amounts of the previous law. Q: Which pensioners are affected by the increase and the retroactive provisions of the Vroutsi law? with percentages that reach 13.88% and with monthly (permanent) amounts that reach 252 euros for those who have received a pension with high salaries. Increases will also have the old retirees (before 13/5/2016) if they will be above the personal difference. If the increase is smaller, the personal difference will be reduced by the same amount. For example, a retiree who has a personal difference of 120 euros and gets an increase of 150 euros, earns 30 euros net increase because the 120 euros go to “disappear” the personal difference. If the increase is 100 euros, then the personal difference will be reduced to 20 euros. For new retirees after 13/5/2016 the increases for those aged 30 and over will be in the pocket for most. In particular increases in the net amount are expected to have: About 50,000 old retirees (leaving before 12 May 2016 ) with a small positive personal difference on average around 30 euros. They equal the personal difference and earn an average increase of 30 euros in 5 annual installments until 2024. For example, if the total increase is 100 euros, the increase for 2020 will be 20 euros and the retroactive increase of about 250 euros. About 100,000 old retirees with increase from 1/1/2019 (negative personal difference). They are entitled to a new weighted average increase of 40-50 euros in five annual installments by 2024. For example, if the total increase is 100 euros, the increase for 2020 will be 20 euros and the retroactive increase of about 250 euros. (from 13 May 2016 onwards) without personal difference. They are entitled to a direct one-time increase in the paid pension, which averages 50 euros and retroactively at least 600 euros. However, another 500,000 will only have an accounting increase (due to personal difference), but will ensure the increases from this year, which instead of 2027 will come from 2024, maybe even earlier. Q .: Will this category of pensioners (with 30 pensionable years or more) retroactively? A: As stated by the Minister of Labor G. Vroutsis in December, the payment of retroactive 16 months, amounting to up to 4,032 euros (it is pointed out that it concerns only those who have more than 30 pensionable years). The total amount that will be allocated is 460 million euros. Q: What are the increases that will be given on a monthly basis to the main, compensatory, pensions? A: According to the examples of the competent ministry, the maximum monthly increase will reach 252 euros (11.8%). This will be received by retirees who retire with a pensionable salary of 3,500 euros / month and 40 years of insurance. From 30 years and 1 month to 33 years the increases in the main contributory pensions range from 0.2% to 5.5% From 33 years and 1 month to 36 years the increases range from 5.7% to 12.5%. From 36 years and 1 month to 39 years the main contributory pensions have increased from 12.6% to 16 , 3% .From 39 years and 1 month to 40 years pensions have increased from 16.4% to 16.85% .Follow it on Google News and be the first to know all the newsSee all the latest news from Greece and World, in



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