Greek Pension Funds On The Brink



4E170E0ECE2AE8E44FD4878F9C1CC42FGreece’s crushing economic crisis has put a big dent in the pension fund system which has a reported shortfall of up to 2.5 billion euros ($3.26 billion) while the National Organization for Healthcare’s (EOPYY) deficit is expected to be 1.5 billion euros ($1.95 billion) at the end of 2013.

According to data presented by the employees in pension funds during their 29th conference, revenues fell up to €700 million ($979 million) during the first two months in 2013. Recession, unemployment and undeclared work may lead the funds to fall even more.

According to the same data, in the largest Social Security Organization (IKA), which resorts every month to internal borrowing to have enough to pay benefits, incoming revenues fell 14 percent in the first two months this year, double what it was a year before, while IKA’s losses due to uninsured labor were 36 percent.

IKA had a supplementary loss of €1.5 billion ($1.95 billion) in 2013 due to pay cuts and unemployment, which reduced how much was collected for pensions from paychecks.

In the Social Security Organization for Liberal Professions (OAEE) the deficit is expected to reach €830 million ($1.083 billion) with a shortfall of 30 percent in contributions. Greece’s international lenders want cuts in pensions as a result. There have also been dramatic revenue reductions recorded for the Agricultural Insurance Organization (OGA) as well.


15 COMMENTS

  1. Easy solution. Pension funds should be funded by pension contributions. If there is a shortfall, cut pensions until there isn’t a deficit.

    If someone currently employed wants a higher pension for when they retire, offer them option of larger contributions. Also offer a private pension option (for those that don’t trust the government or feel they can get a better return in private sector)

    And for the ones that feel they are entitled to free lunch at the expense of someone else’s lifetime of hard work…

    …consider sending them back to kindergarten to learn basic arithmetic. If they keep complaining, maybe a spanking by their parents that spoiled them. As a last resort, offer them a free one-way flight to their communist utopia of the “Democratic” Republic of North Korea where workers are ” liberated from exploitation and oppression”

    “The Democratic People’s Republic of Korea is a genuine workers’ state in which all the people are completely liberated from exploitation and oppression. The workers, peasants, soldiers and intellectuals are the true masters of their destiny and are in a unique position to defend their interests.”
    http://www.korea-dpr.com/

    North Korean GDP/Capita – 1,800
    South Korean GDP/Capita – 31,220

    http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita

  2. He doesn’t live in Greece.

    Alex the Arse has a comfortable life in the U.S. as a 10th generation Greek.

  3. Let’s not forget that Mr. Simitis gambled the taxpayers funds away in the stock market.

    Of course, when the IKA collects 45% from an employer while the same costs are less in Norway 21.9% or even the USA 11%, then there should be an extreme excess of funds.

  4. Sure Skopian. You are writing your opposition to me because you “ccare” about Greeks.

    It make mes laugh when dumbass communists like Savas write in agreement with you Skopain false flagging trolls. Meanwhile your “comrade” Savas doesn’t realize that Skopians like you vote ultra rigthwing crypto-fascist Grueski in FYROM.

  5. You should move to your communist utopia of North Korea Savas..

    According ot the “Democratic” People’s Republic of Korea’s government it is…

    “….a genuine workers’ state
    in which all the people are completely liberated from exploitation and
    oppression. The workers, peasants, soldiers and intellectuals are the
    true masters of their destiny and are in a unique position to defend
    their interests.”
    http://www.korea-dpr.com/

    ……..
    Communist dictatorship North Korean GDP/Capita – 1,800
    Free elections (i.e. democratic) South Korean GDP/Capita – 31,220

  6. Hey “Kosta” you know what’s really funny about communists like Savas agreeing with Skopian OPA (as you have done) is that Skopians like OPA support far right-Gruevski in FYROM.

    Skopian trollers love to pretend they support leftists when it comes to Syriza though (why OPA is attacking me). They do this because they know they can manipulate the anti-nationalist extremism of our clueless communists buffoons.

  7. The artificially interest rates worldwide due to Libor have destroyed all pension plans across the world. If the real inflation rate is several points higher than the interest of the funds are getting from the bank than the amount needed to be put in to compensate will be higher and higher.
    The low interest rates were kept to appease the speculators so they can keep putting money into their derivatives gambling schemes.

  8. We communists agree.

    Fascist FascistFascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist Fascist