Greece’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.