Greek Minister of Labor, Social Security and Social Solidarity Giorgos Katrougalos admitted on television that supplementary pensions will be cut completely and the main pension will be 390 euros.
Interviewed on Star television, Katrougalos said that the Greek government has agreed on a 390-euro basic pension. He claimed that the pension reform aims at protecting low pensions. The minister also admitted that pension funds have run out of cash.
“On top of the basic pension — the national pension — there will be another pension that corresponds to the actual contributions. This would guarantee that every pensioner would not face the risk of poverty,” the minister said.
The basic pension should equal 60 percent of an average wage and the current supplementary pension added to low pension (EKAS) should be incorporated to the main pension. This would also save the existence of the EKAS fund.
Katrougalos further explained that he will propose that a pension granted should be independent of income: “I reject any connection between a pension and income criteria. Our security funds have huge deficits that are financed by taxes.”
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