A Council of State decision grants pension rights to thousands of insured individuals with debts to EFKA who are aged 67 and over and cannot retire. This ruling validates an insured member of TSMEDE whose debt exceeds €30,000, the limit set by the legislator for pension withholding after its issuance.
Pensions: How the Council of State opened the path for retirement of insured with debts over €30,000
The decision was made when an engineer, insured with TSMEDE for 38 years, applied for old-age pension but had unpaid insurance contributions exceeding €34,000 and was unable to pay them. The courts ruled that, based on the principle of proportionality, he is entitled to a pension calculated for the period he paid contributions, with debt offsetting/withholding from the pension. e-EFKA sought annulment, citing contradiction with a previous Council of State decision 546/2007 for a TEVE insured member. The Council of State rejected the application as inadmissible, ruling that the legal issue was not identical to the previously resolved one, as it concerned a different Fund and different legal basis. According to the legal framework enacted in 2024, if someone has pension debts, 60% will be withheld and insured individuals will receive the remaining 40%. The withholding will be at least €333 per month for EFKA debts and €100 for OGA debts. Once the debt drops to €20,000 for EFKA and €6,000 for OGA, the full pension will be granted and the remaining debt will be withheld in 60 installments from the pension.
Requirements for inclusion in the arrangement
For inclusion in the arrangement, the insured must meet the following requirements:
- Debts to e-EFKA must not exceed €30,000 or to former OGA €10,000.
- Must have completed their 67th year of age or, if they have at least 40 years of insurance time, their 62nd year of age.
- Must have paid contributions corresponding to at least 20 years of insurance time or 6,000 insurance days, regardless of the former pension-granting authority.
- Bank deposits must not exceed €12,000 or €6,000 if exclusively indebted to former OGA. Specifically for bank deposit amounts, the total amount of deposits in all bank accounts maintained in the debtor’s name at the end of the month preceding the application submission date is considered, as well as the average of the last twelve months.
Application submission procedure
The inclusion application is submitted together with the retirement application. After submitting the inclusion application, e-EFKA checks whether the insured’s debts exceed the set limits. If the debts do not exceed this amount, the pension act is issued and the pension is paid. If the checks show that the inclusion requirements are met, then:
- If the total debt amount exceeds €20,000 but not €30,000, or €6,000 but not €10,000 for former OGA, then the application is accepted and e-EFKA proceeds to issue the pension act.
- If the total debt amount exceeds €30,000 or €10,000 for former OGA, then a debt notice is communicated so the insured can pay the excess amount and be included in the arrangement.
What applies to pending and rejected applications
- Retirement applications submitted until the entry into force of Law 5078/2023 and pending at any stage of the administrative procedure can be included in the arrangements following an application by the insured.
- Retirement applications submitted after the entry into force of Law 5078/2023 and pending at any stage of the administrative procedure can also be included in the arrangements.
- If the retirement application has already been rejected due to debts, resubmission is required for inclusion in these arrangements.
Published in Apogeymatini
