Greece’s biggest Social Security Fund for the private sector IKA is seeking 200 million euros in order to be able to pay pensions for the following months until the end of the year.
“The governing board of the Social Security Foundation (IKA) on Thursday rejected the management’s request for money from the Social Security Capital for the Solidarity of Generations (AKAGE) for pensions for the rest of this year, while the board of the fund of the self-employed (OAEE) approved a similar request to the amount of 150 million euros.
For the last few years the ailments of the social security system have become more pronounced toward the end of each year, when the annual funding from the state budget starts to run out.
This year estimates put the total deficit of the system at around 3 billion euros, not including the 2 billion euros that IKA and OAEE owe to the healthcare service organization (EOPYY) or the 3 billion that IKA owes to the Manpower Organization (OAED).
Kathimerini understands that it was IKA’s debt to EOPYY, and the latter’s pressure for at least a partial repayment, that pushed the IKA administration to request a minimum of 200 million euros from AKAGE’s relatively small coffers, which contain around 400 million. The request was rejected by nine votes to seven, including the no vote from the Finance Ministry’s representative. At the same time, OAEE’s board approved the demand for 150 million from AKAGE, fearing that it would be unable to cover the amount for the payment of pensions. The self-employed professionals’ fund has already received additional financing from the state, amounting to 200 million euros, and is now seeking more.”
PS right now I am not able to tell you how many billions of euros Greece’s social security Funds lost through the famous “Greek Bond Swap” (PSI) in March 2012. And if one adds the black labor market that deprives the social security funds of revenues or the debts employers have to funds… well… it is a surprise that pensions can still be paid.