Government decision on ancillary pensions causes furore

Following the uproar caused by revelations that thousands of ancillary pensions were in danger of totally disappearing as a result of retroactive deductions in three instalments, the government has backtracked and plans to place a limit on the deductions. According to Labour Minister George Katrougalos, a 10% limit will be placed on the amount of deductions to supplementary pensions on the aggregate amount of main and supplementary pensions. An example is telling. A pensioner would see his 149 monthly pension slashed to 75 Euros, 74 Euros of which would be deducted leaving him with only a 1 Euro pension! Fearing the new reality would cause a huge backlash in society, the Ministry decided to spread out the time frame of the deductions to ameliorate the negative impact on pensioners, a move, of course, that must be approved by Greece’s creditors, as the deal with the EU institutions provided that the government save 375 million Euros in 2016-17. The agreement with the lenders foresaw that the amount be collected by the end of 2016, but analysts believe that over 12 more months would be necessary, if the new plan was adopted.