The Greek government is expected to push forward a major reform to the pension system starting in 2027, abolishing — following the model used for survivor pensions — provisions of the Katrougalos law that govern the calculation of lump sum retirement payments, which currently treat thousands of workers unequally when they retire. According to reliable sources, the Prime Minister is expected to announce this sweeping change at the opening of the Thessaloniki International Fair, with the dual-system calculation for lump sum payments set to be scrapped entirely. The current system primarily disadvantages younger workers, who will see significant increases following the reform.
Lump sum calculation under two separate components
Specifically, the current system calculates the lump sum payment using two distinct components:
– The first covers insurance years up to 2013 and is based on 60% of the average earnings from the best five-year period between 2009 and 2013.
– The second covers years from 2014 onwards, which is not fully contributory in nature, a fact that has led to a gradual reduction in payout amounts, as changes to the calculation method have effectively converted part of the lump sum into an interest-free return of contributions.
The proposed changes
The proposed reforms currently on the table for the economic policy team aim to create a fairer and more stable framework, though their implementation will ultimately determine whether the system succeeds in eliminating the inequalities already being observed. The proposals under discussion — which are set to be finalized during August — focus on changing the lump sum calculation method, and in particular on extending the 2009–2013 five-year reference period currently used to calculate the most favorable portion of the payment, so that it is closer to the actual retirement age. A new calculation is also being considered for those retiring after 2026, with the goal of establishing a more balanced system that reduces inequalities and “delivers greater fairness for all retirees.”
Current figures in the public sector
– According to data from EFKA, the average lump sum payment for public sector civil servants this year stands at €24,600, representing a marginal decrease compared to 2025.
– For municipal employees (TA-DKY), the average lump sum amounts to €21,200, reflecting a relatively significant increase of €960 compared to 2025.
– For security forces personnel, the average lump sum in the first two months of 2026 reached €24,500, representing an increase of €11,000.
– For teachers, the average lump sum payment stands at €24,500, marking a significant decrease compared to last year.
– For employees on special pay scales — including university professors, NHS doctors, diplomats, and judicial staff — the average lump sum in payments made during the first two months of the year reached €40,100, reflecting a decrease of €2,000.
– For employees who retired from public hospitals and are on a waiting list to receive their lump sum, the average payment in the first two months of 2026 stands at €23,226, down by €3,103 from 2025.
Lump sum payments in state-owned enterprises
Retirees from OSE (Hellenic Railways) receive a lump sum of €103,000, up by €30,000 compared to 2025. OTE (Hellenic Telecommunications) retirees receive €52,300, an increase of €10,000 from 2025. For DEI (Public Power Corporation) retirees, the average lump sum payable amounts to €44,000, reflecting a decrease of €5,500 from 2025, when it had stood at €49,781. For ERT (Hellenic Broadcasting Corporation) retirees, the lump sum payable in the first two months of 2026 reached €11,751.
Retired banking sector employees
For retired banking sector employees who made welfare contributions to the fund of the former Emporiki Bank, the average lump sum payable amounts to €39,646.
For retired banking sector employees from the fund of the former Ionian Bank, the average lump sum payable this year stands at €46,600, up by €7,000 compared to the same two-month period in 2025.
Doctors, lawyers, and engineers
Among the professional funds, notaries receive the highest average lump sum, with the average amount standing at €24,658, though this represents a decrease of €5,900 compared to 2025.
For retired Athens Bar Association lawyers (TPDA), the average lump sum payable amounts to €17,500, down by €1,200 from the average payout in 2025.
Retired doctors receive an average lump sum of €4,700, up by €650 from 2025.
For retired engineers, the average lump sum payable is €8,828. Despite the increases recorded across the public sector and state-owned enterprises, these amounts remain significantly lower than the lump sum payments made prior to the change in the calculation method in 2016.
Originally published in “Apogevmatini tis Kyriakis”.
