Retroactive Retirees: Regulation in Parliament – What Will Beneficiaries Get from State and Local Government?



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Two-speed retro for 1.1 million retirees – Double return to the private sector, simple to the State

Retroactive payment to 1.1 million retirees with sum of main and auxiliary pension greater than 1,000 euros, as The amendment for retrospectives of public sector pensioners was presented to Parliament.

As ethnos.gr had written, the amounts from the reduction of law 4093/2012, which imposed a staggered “scissors” from 5% to 20% on pension income above 1,000 euros, are returned to state pensioners . but not the court of law 4051 of 2012, which is returned only to pensioners from the private sector and refers to pensions above 1,300 euros.

ECONOMY

In retrospect: what public retirees will get: the difference from the private sector

In retrospect: what public retirees will get: the difference from the private sector

So Private sector pensioners with a main pension of more than 1,300 euros will have a double return in hindsight, while public retirees with a main pension of more than 1,300 euros will have only one return. The cause is a crisis of 2017 of the Plenary of the Court of Accounts, which is the Supreme Court competent for the main State pensions, that is, the General State Accounting Office, which concluded that the court of law 4051/2012 is constitutional. By the same reduction, the Supreme Court, which is the Supreme Court competent for the private sector, has ruled in 2015 that it is unconstitutional.

Single return for OTA – NPDD

The same formula that applies to the State will be applied – with the single refund for pensions over 1,300 euros – and for retirees of Local Government Organizations, and the rest of NPDD governed by the same pension scheme as public officials, whether their pensions are paid by the State or by other former Funds, as well as by OSE staff and employees of the Railway Networks staff insurance funds.

Extra retro for sailors

With the same amendment they are retroactively given “extra” to retired BC sailors. NAT. Specifically, it is returned, always for the 11 months June 2015 – May 2016, the 7% reduction that had been imposed since 2012 and based on the JMC of the co-responsible ministers, in the main pensions of retired sailors of pr. NAT.

The amounts will be given now. no withholding of taxes and no withholding of solidarity contribution. The amounts to be delivered will be taxed in accordance with the general provisions such as income from paid work and pensions.

The statement of reasons for the modification refers to the opinion expressed by the majority of the Plenary of the Court of Auditors in the reasoning of the session of March 29, 2017, when the Supreme Court ruled on an objection that had been filed by an associate professor at a university and referred to the reduction of his pension with article 1 para. 1 of law 4051/2012.

The minutes of the disputed meeting, revealed by ethnos.gr, The thought was expressed that “this regulation (ss the reduction of law 4051 of 2012) does not contradict the provisions of articles 2 para. 1, 4 para. 5, 25 para. 1 and 4 of the Constitution”. The same reasoning states that the retroactive imposition of the reduction (that is, as of 01.01.2012) is not contrary to article 1 of the European Convention on Human Rights and Greek internal law, since it does not constitute an excessive burden on property of the pensioner ”. However The same reduction imposed by law 4051 of 2012 has been considered unconstitutional by the CoE for the private sector.

Two retro speeds

Therefore, although all the beneficiaries of retirees from the public and private sectors will receive a refund of 11 months retroactively – that is, the amounts corresponding to the period from June 11, 2015 to May 13, 2016 – are retroactively to two speeds. This is because:

  1. Retirees from the private sector will receive back the amounts of 11 months corresponding to 2 reductions and in particular the 12% reduction in the part of the main pension that exceeded 300 euros (law 4051/2012), as well as the reduction of the main pension with a scale of 5%, 10%, 15%, 20% for accumulated amounts of 1,000, 1,500, 2,000 and 3,000 euros in the sum of principal and auxiliary respectively.
  2. Public pensioners will recover the amounts of 11 months corresponding to 1 reduction and in particular the “scissors” 5%, 10%, 15%, 20% for accumulated amounts of 1,000 euros, 1,500,000 and 3,000 in the sum of principals and auxiliaries respectively. In addition, with resolution 1277/2018 of the Plenary of the Court of Accounts, the provision of law 4093/2012, which referred to cuts in public pensions exceeding 1,000 euros, was declared unconstitutional.

What state pensioners lose

Public pensioners with a main pension of more than 1,300 euros have losses with this formula, as they will receive lower amounts from private sector pensioners with the same amount of main pension. This is due to the fact that, apart from the returns to the State, the 12% scissors remain in the part of the main pension that in 2012 exceeded 1,300 euros, according to the relevant jurisprudence.

Retroactive amounts will be paid simultaneously in october to retirees from the public and private sectors. The formula for returns remains the same as it is stipulated that the amounts of the unconstitutional cuts of 2012 (one for the State and two for the private sector) are paid without interest to the pensioned beneficiaries in the main pensions. Upon payment, the claims of state pensioners for amounts corresponding to cuts, reductions and suppressions of main pensions, auxiliary pensions, holiday supplements and Christmas and Easter holidays for the period from 11/6/2015 to 13/5/2016 (Katrougalos Law publication) are extinguished.

The amortization of future claims does not cover pending litigation in court.

The retroactive amounts will be for everyone, that is, for retirees from the public and private sectors. inalienable and unbridled in the hands of the State or third parties, by repealing any general and special provision, they are not linked and compensated by certified debts with the Tax Administration and the State in general, the Municipalities, the Regions, the Insurance Funds or the Institutions of credit.

The amounts will be delivered without deduction of 20% tax, as provided for income from salaries and pensions paid retroactively. Instead, they will be taxed under the general provisions such as income from paid work and pensions. Furthermore, no special solidarity contribution will be imposed.

See here the minutes of the disputed meeting of the Court of Accounts that considered the reduction of Law 4051/2012 constitutional.

See here the amendment presented to Parliament

See here the decision of the Plenary of the Court of Accounts 1277/2018 που έconsidered unconstitutional the reduction of law 4093/2012

Returns amounts

  • Retired private sector employees insured in pr. IKA is expected to receive 550 to 4,500 euros.
  • DEKO retirees – the banks of the old noble Funds will receive from 1,300 to 7,800 euros
  • Former self-employed retired (before OAEE) must expect amounts of 1,400 – 3,400 euros
  • Self-employed retired insured in pr. The EBRD is expected to receive amounts of 1,400 to 6,000 euros.
  • Public retirees with a main pension of 1,600 euros will receive 1,600 euros, with a main pension of 2,000 euros they will receive about 1,860 euros, while with a main pension of 2,500 euros they will have to wait 3,300 euros.

The average amount varies according to social security experts between 1,300 and 1,500 euros.

In detail, those who had a pension sum in 2012:

  • 1,000 – 1,100 euros is expected to receive about 550 euros
  • It is expected that between 1,100 and 1,500 euros will receive about 800 euros
  • It is expected that between 1,500 and 2,000 euros will receive about 2,600 euros
  • 2,000 – 3,000 euros are expected to receive about 5,500 euros

The large amounts that reach and exceed 7,000 euros mainly affect retirees with a total pension of more than 3,000 euros in 2012. This is mainly for double retirees receive two or more main pensions (for example, widowhood and old age or two old age rights from the public and private sectors, etc.) and retired from IKA, DEKO – Banks and the State that had high and very high pensions in 2012.

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