Worried Greeks Flee For Pensions

Anxious that there will be an increase in the retirement age and reduced benefits, hundreds of thousands of Greeks are fleeing the public and private sector to grab a pension now, even as the number of workers supporting the system has fallen because of record unemployment caused by harsh austerity measures. Workers are also anxious that this month’s elections for Greek municipalities and the European Parliament could jeopardize the government of Prime Minister Antonis Samaras, the New Democracy leader, and his fast-fading partner the PASOK Socialists and lead to unfavorable changes in pensions. The government has slashed pension benefits as well as for auxiliary pensions on orders from international lenders and worries are growing that it could get even worse despite a promise by Samaras there wouldn’t be any more measures. Some retirees are living on pensions as low as 300 euros ($410) a month before taxes. Workers from a growing number of sectors, increasing tax offices, municipal authorities and teachers because of uncertainty over pensions. It can take a year or longer before retirees get their first check and they are barred from working during retirement. Pensioners have also seen their lump sums, money deducted from their checks for decades, cut up to 38 percent although the country’s highest court has deemed that unconstitutional. The government has not reacted to that. Auxiliary pensions have also been cut or eliminated for pensioners, who have to wait up to two years or more before getting those benefits. Speaking on Skai TV, Labor and Security Minister Yiannis Vroutsis said rumors about an increase in the retirement age weren’t true and tried to appease worried workers who are on the verge of fulfilling criteria for retiring. Retirement applications in the private sector have grown due to fears that the retirement age will be extended and that pensions will be reduced from January 1, 2015. While insecurity is soaring in the public sector, especially for those approaching retirement and the mothers of young children, in the private sector the waiting time for the issue of pensions by the Social Security Foundation (IKA) has grown longer than ever, with central IKA offices finding it impossible to serve the huge numbers of workers seeking clarifications, while there are also concerns regarding auxiliary pensions. Incentives to work beyond the retirement age have virtually been eliminated, as the chances of an increase in the size of pensions are next to zero for those who do choose to stay on, deterring workers from taking the risk. According to the latest data from the ministry, the number of people receiving pensions related to age, disability or death from IKA has grown by 17 percent in the last six months, while expenditure has increased by 24 percent. In April IKA issued 206,436 more pensions than in October and spent 209.3 million more on pensions than six months earlier.

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