Back payment packages ranging from €500 to €16,800 for 900,000 pensioners are currently being processed by EFKA and will begin to be disbursed, case by case, from the end of October. Specifically, these are back payments owed to 370,000 pensioners who won court decisions for the disputed 11-month period from June 11, 2015 to May 12, 2016, regarding supplementary pensions and bonuses, who will receive amounts with interest up to €4,000.
Additionally, 360,000 public sector pensioners are entitled to back payments for the withholding of the Solidarity Contribution for the 2017-2018 period, which was ruled unconstitutional. There are also 35,000 pensioners who retired after 2016, with 30 or more years of contributions, who are awaiting back payments through the recalculation of main pensions under the Vroutsis Law (Law 4670/2020). This category includes an additional 15,000 requesting recalculation due to system errors. Among those waiting, we must also count 110,000 pensioners mainly from DEKO-banks, who are entitled to back payments from additional contributions they paid as insured persons for supplementary insurance.
Back payments: Solidarity contribution withholding repayments begin in January
Starting in January, installment payments of back payments from the Solidarity Contribution (EAS) withholding will begin for 360,000 public sector pensioners. The amount to be returned covers the 2017-2018 period, when this specific contribution was ruled unconstitutional. It should be noted that the Court of Audit ruled the imposition of the Solidarity Contribution unconstitutional only for the years 2017-2018. Thus, all pensioners, even those who did not file lawsuits, are entitled to refunds, as the unconstitutionality applies to everyone without exception for the period in question. Conversely, new pensioners after May 13, 2016, are not entitled to back payments, since the cuts, including the EAS, were incorporated into the recalculation under the Katrougalos Law, making the deductions legal. These are amounts ranging between €1,300 and €8,000, depending on the pension amount.
Who is entitled to main pension back payments
Approximately 35,000 pensioners who retired after May 2016 are entitled to main pension back payments under the Vroutsis Law (Law 4670/2020), despite having over 30 years of insurance, which they have not received. That is, the necessary recalculation of their pension has not been done and therefore they have received neither the increased monthly amounts nor the corresponding back payments. The new increases have been in effect since October 2019, resulting in beneficiaries also receiving back payments. In many cases, amounts range from €3,000 to €5,000 for insured persons with 35-36 years, while for those with 40 years and high pensionable salary, amounts may exceed €8,500. According to legislation, those who retired with more than 30 years of insurance should have received increases based on the improved replacement rates of the Vroutsis Law, according to which 31 years corresponds to an additional 1.08% increase in the contributory pension. For 40 years, the increase reaches 7.2%, etc.
Supplementary pensions
This concerns 110,000 pensioners mainly from DEKO-banks who are entitled to back payments from the 0.075% increase on additional contributions they paid as insured persons for supplementary insurance. This affects pensioners after 2016. It should be emphasized that there are 16 funds where insured persons paid contributions above 6%, including all banking supplementary funds (National Bank, Commercial Bank, Alpha Bank, ATE), DEH, ERT, commercial employees (TEAYEAK), IKA-ETEAM for heavy industries, and TEACH (chemicals). This specific increase concerns the part of the supplementary pension corresponding to insurance years up to 2014. Although contributions were paid, in many cases they were not translated into a corresponding pension amount increase or back payments, resulting in pensioners being able to claim what is owed today with a recalculation application to ETEAEP, which issued their pension.
Back payments can reach up to €16,800
The amount of back payments varies depending on retirement time, and in some cases can reach as much as €16,800. For example, a pensioner from a banking fund (Commercial Bank or ATE) with total contributions of 12% retired in 2018 with 25 years of insurance. Today they receive a supplementary pension of €148. However, with the planned increase, their amount will increase by €175 and rise to €323, while they are entitled to back payments of €16,800. Another insured person who paid 10% contributions and retired in 2022 with 35 years of service receives €370 in supplementary pension. The non-application of the increase means they lose €200 every month, while their back payments are calculated at €9,600. After recalculation, their supplementary pension will reach €570. Interested pensioners need to confirm that their supplementary fund provided for contributions above 6%, as well as that the increased contributions were paid until 2014.
Published in Parapolitika
