During a cabinet meeting on Wednesday, Prime Minister Kyriakos Mitsotakis outlined the supplementary social security system reform scheduled to be voted in the Parliament in August.
He said that the new system based on “Swedish model” will operate according to a pay-as-you-earn system of supplementary social security.
The reform will affect workers up to 35 years old, by choice, and newcomers into the labor market.
The worker will have an additional, individual money box to which all contributions will be directed. The workers will be able to “invest this capital” according tho his choices, and will always have access to at the end of his working life.
This will be in addition to the main national pension which will continue to be financed by the state as well as a supplementary pension.
” I should note that a special clause in the law will provide that regardless of the course of the investment, the final pension can not be lower, it can not be lower than that corresponding to the total contributions of the employee,” the prime minister said.
The reformed system will be in force from the beginning of next year, he added.
He said that the sustainability of he social security “is threatened by the demographic decline” and stressed the need for “solidarity between the generations”. He referred to the unwillingness of young generations to work insured and also stressed that “the reduction of the supplementary pension in relation to the main salary, which, unfortunately, is something that has been going on for years.”
Loyal to the government narrative that whatever it does is done also elsewhere, PM Mitsotakis said that the new system “is valid in almost all countries of the developed world.”
PS The PM forgot to mention that supplementary and main pensions for which people paid their contributions through their entire working life were sharply cut due to the economic crisis caused by the mismanagement of PASOK and New Democracy, that billions of euros disappeared from the social security system after the bond swap PSI in March 2012 and that much too many employers prefer to hire employees part-time on the paper and have them work full time in order to escape social security contributions.
As for the “decreasing salaries” the current ND government is to blame as well with its new labor law that the market (employers) started to implement months before it became a law.
Not to mention private insurance companies that went bust and people lost their money.
But you can’t have a clue with politicians, especially with Greek ones… They think they can cure the Greek pathogenic diseases with rhetoric.
