Greek Pensioners Sue For Lump Sum Payments

Greek civil servants, upset that the country’s highest court has ruled that military pay cuts imposed as part of austerity measures affecting the public sector across-the-board were unconstitutional and must be repaid, are suing to get back lump sum benefits that were slashed even though they were earned.
The government has cut the lump sums as much as 38 percent, effectively taking way funds that were withdrawn from worker’s checks for decades. The workers already affected want their money back and if they are successful, lump sums for pensions would have to be brought back to their original levels, costing an as yet unknown amount.
The Council of State said its ruling concerning the armed forces and emergency services was a special case but other public workers are starting to line up to demand the same treatment, which could undermine the pay cuts, tax hikes, slashed pensions and worker firings instituted by the government.
There was no indication on whether the suit would also seek the restoration of benefits that have been cut, reducing some elderly to live only only 300 euros ($410) per month.
Prime Minister Antonis Samaras, the New Democracy Conservative leader, and his coalition partner the PASOK Socialists, are under continuing pressure from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) which is putting up $325 billion in two bailouts not to let up on reforms.
The appeals being weighed by the country’s highest administrative court have been lodged by civil servants but also by social security funds, said Kathimerini, citing unnamed sources.
The Finance Ministry is already scrambling to find some 500 million euros ($683.86 million) in revenue to return withheld wages to military and security services staff ahead of a formal court verdict on that case.
Unease in the government has been fueled by a ruling by the European Court of Human Rights according to which a retirement lump sum constitutes part of a pensioner’s personal wealth, as it has been generated through the latter’s contributions, and that any reduction to that sum is a violation of their rights.
There was no indication on when there would be a decision. Greek teachers have been waiting for years for the government to follow a previous court order they be paid retroactive raises which was ignored by the government and continues to be.