Greek government and the Troika plans to cut even low pensions of 486 euro per month as the hole in the country’s biggest insurance fund IKA has reached one billion euro. According to daily Eleftherotypia, the plan foresees cuts of
1) 15 euro per month in 486-euro pensions for private sector. The measure will affect 2,851,200 pensioners and will bring IKA 513,216,000 euro per year.
2) 10 euro per month in 360-euro pensions for farmers. The measure will affect 776,000 pensioners and will bring OGA (Farmers’ Pension Fund) 100,000 euro per year.
Speaking to Eleftherotypia, a Labour Ministry official said that there cannot be further cuts in higher pensions. “IKA pensions were 2,000 euro in 2009, now they are at 1,180 euro. A cut in remaining high pensions would not have impressive fiscal benefits as it would affect only 20% of the pensioners.”
The pension cuts are inevitable due to outstanding debts to IKA, officials said.
However, they forgot to mention that the unemployment at 27% does not help isnurance funds with contributions either.
What’s in 15 euro per month reduction?
Some of you may wonder, “what’s in a reduction of just 15 euro per month?” I will tell you right away:
A relative, 82, is chronic ill. In 2009 she was receiving pension of 490 euro+200 euro “low pension aid” (EKAS).
In December 2011, EKAS was cut off.
Her net pension was reduced down to 460 euro due to 30 euro monthly health contribution imposed after the unification of insurance funds to EOPYY in 2012.
Since last September, she started to pay 40 euro per month from her own pocket for her prescription medicine. An amount that she did not pay before. in September 2012, the health ministry had decided that chronic ill will have to pay 25% for their medication.
As the health condition of the woman deteriorates year by year, she needs another 50 euro per month to cover some additional aid she needs.
Last Christmas, the woman received the so-called Xmas bonus of 200 euro for the last time. Pensioners will not receive bonuses anymore.
From 2011 until today, the woman saw her annual income being reduced at:
2,800 euro per year from EKAS
360 euro per year (health care contribution)
240 euro (Sep 2012- Feb 2013) medication contribution = 480 per year
600 euro per year for the extra aid.
Her monthly net income is down to 370 euro from 490 euro. Another reduction of 15 euro per month will deprived her from her daily bread…
Oh! And she has to pay taxes now that the tax-free cap of 5,000 euro per year has been removed (lol?)
This cute interior belongs to ex Defense Minister Akis Tsochatzopoulos. The 3-storey building was apparently bought with ‘black political money’, says the Justice. The ex minister and his friends have cashed some 200 million euro in bribes, claim the Greek media.
I hope, my neighbor does not have internet access -although this and other house pictures were broadcast on TV last night. But I think, the old lady had been asleep by 8 o’ clock.