As of today, Friday 22 May, the payment of June pensions has started and many retirees have been upset since Thursday afternoon when their pensions began to be reduced.
According to an announcement by EFKA, there are two main reasons why less money was put into thousands of accounts in June.
The announcement of EFKA
In the context of the implementation of Law 4670/2020, e-EFKA proceeded to lift the unconstitutional ceiling of 1,300 euros for supplementary pensions, which was provided by law 4387/16 of the SYRIZA government.
On Monday, June 2, 2020, the supplementary pension will be paid to 236,274 retirees, increased by an average of 75.47 euros (net amount before tax). The payment of the increase also affects the amount of the monthly withheld tax that is proportionally distributed between the main and the supplementary pension.
For a better understanding, the following two real examples of retirees are presented.
- A retired person with a principal amount paid before tax of 1,272 euros:
- He received a supplementary pension of 105 euros in May and withheld 130 euros in main pension and 12 euros in supplementary pension.
- From June 2, the ceiling of € 1,300 is abolished and the amount of the supplementary pension paid in his account increases from 105 euros to 192 euros. Respectively, the amounts of withheld taxes are amended from 130 euros to 142 euros in the main pension and from 12 euros to 24 euros in the supplementary pension.
- A retired person with a principal amount of 1,328 euros paid before tax:
- in May he received a supplementary pension of 112 Euros and withholding tax of 144 Euros on the main pension and 42 Euros on the supplementary pension.
- From June 2, the ceiling will be abolished and the amount of the supplementary pension paid in his account will increase from 112 euros to 202 euros.
Respectively, the amounts of withheld taxes are changed from 144 euros to 156 euros in the main pension and from 14 euros to 27 euros in the supplementary pension.
In addition, the payment of June 2020 was applied to those retirees who retired from 1/1/2017, the monthly contribution of 0.20 euros provided by article 102 of L4387 / 2016 for the reinforcement of Federations, Associations and Pensioners’ Confederations.
This reservation had not been implemented until today due to the weakness of the information systems, as a result of which the specific amounts were retroactively withheld from the date of award, reaching in some cases the maximum of 8.4 euros for 42 months.
Skylakaki’s answer for the reduced amounts
Speaking to Realfm 97.8, Deputy Finance Minister Theodoros Skylakakis was asked about the specific issue that has arisen and stated:
“It simply came to our notice then. One is an old 5-euro levy that was passed by the previous government and it’s time to implement it. The second has to do with the following: now the main pensions are paid and those who have increased in the supplementary benefits – which they will see as soon as the supplementary benefits are paid in a few days – have a slightly higher tax. That is, if you are going to get a 100 euro increase, you also have an additional 10 euro tax, which is mainly deducted from your main pension “.
And the deputy governor of EFKA, K. Tsagaropoulos in a TV interview confirmed that the reduced pensions are due to the retroactive withholding for assistance to a trade union body “.
It is, as he said, retroactively from 2018, 6 euros and over that reach for some up to more than 50 euros as he said in his intervention on ANT1.