The leadership of the Ministry of Labor faces a serious dilemma regarding widow pensions and the cuts provided by the Katrougalos Law, according to a report by “Apogeumatini”. The provisions being resolved concern both the already low widow pensions of farmers and the pensions of engineers, doctors and notaries of the Scientists’ Fund (ETAA), following critical intervention by the State Legal Council.
Widow pensions: Solutions being examined for unfair cuts under Katrougalos Law
Regarding the issue of widow pensions for farmers as well as civil servants, the Katrougalos Law was fully implemented from 2021 resulting in significant cuts. However, implementation remains incomplete for other funds, including IKA and DEKO.
According to a recent parliamentary question by eight MPs from the ruling party, law 4387/2016 brought radical changes to the regime for granting death benefits. The new unified framework applies to deaths that occurred from May 13, 2016 onwards, providing that the surviving spouse is entitled to 70% of the pension for three years, while after the three-year period the percentage is reduced to 35% if they work or receive another pension.
Minimum thresholds and exceptions in widow pensions
Article 1 of law 4499/2017 established a minimum threshold for death benefit pensions. The minimum amount was set at 384 euros, which from January 1, 2025 was adjusted to 436.40 euros.
Nevertheless, the widows and widowers of retirees from the former OGA, whose death occurred before May 13, 2016, are excluded from the favorable regulations. These widow pensions remain at extremely low levels, as the surviving spouse is entitled to only half of the deceased’s main pension, without a minimum threshold.
Problems with ETAA professional pensions
Meanwhile, EFKA issues pensions with reservation of future cuts for retired engineers and notaries. The State Legal Council’s opinion renders invalid thousands of pensions that were erroneously issued with increases due to double contributions.
The problem mainly concerns engineers and the amount they are entitled to from the special increase branch. In many cases, larger amounts were granted than those corresponding to the contributions paid, while the opposite also occurs with retirees who are entitled to higher pensions.
Cancellation of increases and legal complications
The State Legal Council cancels pension increases for double contributions due to credited service of ETAA insured persons who worked as temporary staff before their appointment to the Public Sector. The opinion calls into question the increases of approximately 5,000 ETAA retirees who retired after law 4387/2016.
The issue arose from two court decisions that annulled the 2018 circular on the special increase for engineers and the ministerial decision on deemed pensionable earnings in the Legal Fund. Both texts were issued without being provided for in law 4387/2016.
Seeking solutions for fair treatment
The calculation of the special increase was made with the pensionable salary of the main pension, while according to the courts, the actual contributions of engineers should have been taken into account. This calculation method favored employed engineers due to higher earnings, but disadvantaged self-employed professionals.
The ministry is examining the establishment of a dual calculation to restore the pensions of engineers who received less than their entitlements, while maintaining without cuts the already issued pensions.
