The implementation of the Katrougkalos law (Law 4387/16) affects lump sum pensions paid to new retirees for the ninth consecutive year, with most categories showing reductions of around 23%. According to a report by Apogeumatini, specific funds from public utilities (DEKO) and banking institutions present a different picture.
According to current legislation, lump sum payments for the same number of insurance years are progressively reduced each year for those who retire after January 1, 2014.
Methodology for calculating lump sum benefits
The calculation process for lump sums in all insurance organizations, except military funds, follows a dual system:
The first part covers insurance years until 2013 and is calculated at 60% of the average earnings from the five-year period 2009 to 2013. The second part covers the period from 2014 until retirement and corresponds to the interest-free return of contributions paid.
This dual methodology favors insured individuals with greater service time until 2013. A characteristic example is a public employee who will retire in 2030 with 38 years of service and will receive a lump sum of approximately 28,760 euros. Compared to a colleague who retired in 2020, the difference reaches 11,500 euros, while in relation to the 2024 retiree, the loss amounts to 6,400 euros.
Categories with increased lump sums in 2025
From the welfare sectors of public utilities, banks, and other private sector organizations, lump sums were paid to 3,968 retirees since the beginning of the year. The highest amounts reached 72,089 euros for OSE retirees and 49,781 euros for Public Power Corporation (PPC) employees.
Recent lump sum payments involved 1,150 retirees who received a total of 23 million euros in July, with a maximum limit of 20,000 euros per beneficiary.
Eight-month data for 2025 shows that the average lump sum in the public sector reached 25,547 euros compared to 22,930 euros in the corresponding period of 2024, marking an increase of 2,600 euros. In public utility and bank funds, the average lump sum amounted to 25,347 euros based on first seven-month payments.
Specific categories show significant increases:
• Educators: average lump sum 26,000 euros versus 22,385 euros in 2024
• Security Forces: 23,338 euros versus 18,712 euros previously
• PPC retirees: 50,767 euros with an increase of 6,995 euros compared to last year
Organizations with reduced lump sums and deductions
Despite recorded increases, current lump sums remain significantly lower than amounts paid before the calculation method change in 2016.
Conversely, ten welfare sectors of EFKA show smaller lump sums compared to 2024. The largest reduction was observed in the Thessaloniki water supply personnel fund, where the average amount reached 40,820 euros from 62,777 euros last year, marking a decline of 21,957 euros.
Former Commercial Bank retirees received lump sums of 22,669 euros versus 27,759 euros in 2024, while beneficiaries from special public sector pay scales saw a small reduction to 41,366 euros from 41,984 euros.
It should be noted that lump sums are paid in full without deductions. Withholding occurs only in cases of tax debts (up to 50% of the benefit), loans from the Deposits and Loans Fund, as well as contribution debts to e-EFKA.
