The increase applies to those who retire following May 2016 and is calculated at a rate of 0.075%, but it was not applied to the supplementary pensions, but only to the main pensions and to Funds that had contributions of more than 20%.
From the journalistic investigation carried out by the “Insurance and Pensions” insert, it found 15 auxiliary funds that at times had increased contributions (beyond 6%) for their oldest insured persons, who, if they have already retired from May 2016 onwards or establish the conditions to receive supplementary from this date onwards, they are also entitled to the corresponding increase for the additional contributions they paid.
The normal supplementary insurance contributions are 6% and the 0.075% surcharge is given as an extra pension amount for insureds who paid 8%, 12% or even 14% contributions instead of 6%.
The provision was passed and applies to those who retire from May 13, 2016 onwards (Katrougalou law), but to date it has not been applied to any pension decision awarding an auxiliary pension, while the opposite is the case with the main ones, where the increase is given to the pensions and increases the amount due to additional contributions.
However, all those who left following May 2016 from Funds that had contributions higher than 6% for the supplementary insurance get a pension without a supplement.
For example, an IKA insured in the heavy with supplementary contributions of 8% instead of 6% left in 2018 with 25 years of insurance at the age of 67 with a supplementary pension of 196 euros, while from the 2% increase in the heavy he will have to receive an additional 55 euros and the pension to be set at 251 euros. The retroactive amounts he is entitled to from the increase are 3,969 euros.
According to information in the “Insurance and Pensions” insert, EFKA is considering ways to calculate the increases in contributions to the supplementary pensions of the Funds that had the additional premium, so that the delay in the implementation of an already voted provision does not drag on.
As the insert of “ET” reveals today, for the increase of supplementary pensions there is an official – internal – document from November 2023 from the competent Directorate of Auxiliary Insurance of the EFKA (ETEAEP) which essentially attempts to limit the beneficiaries who will receive an increase in their supplementary benefits! The document revealed today in the ‘Insurance and Pensions’ insert (pp 4-5) refers to bank supplementary pension top-ups and more or less interprets the legislation as they see fit, concluding that not everyone gets a pension top-up and let them pay extra contributions!
However, the fact is that the law provides that insured persons who had contributions (employee and employer) of more than 6% in their supplementary insurance are entitled to receive a larger supplementary pension, just as it applies to their main pensions.
The fact that EFKA has not been able to implement the law for 8 years shows that the provision was passed without prior study on how to implement it. Given that from May 2016 onwards the method of calculating supplementary benefits has also completely changed, EFKA will have to do double work, since in order to pay the increases in additional contributions, all supplementary pensions that had increased contributions will be reviewed, in order to ascertain what amount pensioners are entitled to from the increase.
Does EFKA have the money to pay the increases and retroactives in supplementary pensions?
The piggy bank of the auxiliaries has income from sickness deductions (6%), from the EAS deduction (3% to 14% in pensions over 300 euros), while from 2020 onwards, when the reductions of the Katrougalos law were restored, the 1.2 million pensioners who receive a supplementary pension have not seen any increase, because the law prohibits it if the bill does not come out. However, the payment of the increases from the additional contributions, firstly, is not prohibited by law, on the contrary, it is provided as a return of the contributions paid by the insured and, in addition, this increase will also replace the normal increases that are not given to the auxiliary ones.
Supplemental allowance increase for the years up to 2014
For applications from 1/1/2015 onwards (Katrougalou law) the supplementary benefits have a double calculation, one for the insurance years up to 2014 and one for the years from 1/1/2015 onwards. The years up to 2014 are calculated with a replacement rate of 0.45%, while from 2015 the supplementary is calculated based on the contributions paid by the insured and according to the age at which they retire.
The increase of the supplementary pensions for the additional contributions concerns the first part of the pension for the insurance years up to 2014 and will be calculated on the pensionable earnings of the period 2002-2014.
Thus, an insured person who paid a contribution of 9% instead of 6% for supplementary insurance until 2014 and retired in 2022 with 35 years of insurance, will receive the increase for the 3 additional units of contributions in the supplementary section until 2014, i.e. for the 27 from the 35 years he retired.
The formula for the increase is: Pensionable earnings from 2002 to 2014 X years of increased contributions X additional contribution X 0.075%.
For example, a pensioner with an additional supplementary contribution of 3% (a total of 9% with the normal contribution of 6%) who retired at 62 in 2020 with a reduced, having completed 30 years of insurance and with pensionable earnings of 1,870 euros, received a supplementary of 184 euros while for the 24 years until 2014 is entitled to an increase of 101 euros which will be calculated as follows: 1.870X24X3X0.00075=101 euros.
Retrospective ancillaries up to 5,664 euros (examples)
For example:
- A pensioner with 25 years of heavy IKA insurance and supplementary contributions of 8% instead of 6% retired in 2018 at the age of 67 with pensionable earnings of 1,750 euros until 2014 and receives a supplementary of 196 euros. For the 2 additional contribution units, he is entitled to an increase of 55 euros with a retroactive amount of 3,969 euros from 2018 to 2024 (72 months) and an additional one following the increase to 251 euros.
- A pensioner with 35 years of heavy IKA insurance who retired in 2022 at the age of 60 with pensionable earnings of 2,920 euros until 2014 receives an additional 436 euros, while he is entitled to an increase for the additional contributions of 118 euros with retroactively 5,664 euros from 2022 to 2024 (24 months) and auxiliary 554 euros.
- A pensioner with 35 years of insurance in the PPC subsidiary and an additional contribution of 3% who retired in 2022 at 60 with pensionable earnings of 2,770 euros receives a supplement of 414 euros, while he is entitled to a supplement of 168 euros retroactively to 4,039 euros (from 2022 to 2024). With the increase, his allowance will be 582 euros.
Supplementary insurance funds with an insured contribution of more than 3%
| Amalgamated/Merged Subsidiary Funds | Additional supplementary contribution (%) |
| PPC (old and new insured) | 1 to 4 |
| ELEM-ATE | 6 |
| ERT (old insured) | 1 to 5 |
| ETEAM-TEAHE (electricians) | 1 |
| ETEAM-TAPGTE (Genki bank) | 1 to 2 |
| ETEAM-TAPEAPI (Horse Racing) | 1 to 2 |
| ETEAM-TEAPAE (Airlines) | 1.80 to 12 |
| ETEAM-TEAPET (Cement) | 1 to 2 |
| TEAPIEN (Merchant Navy) | 1 to 2 |
| TEAPIEN (NAT Employees) | 10 |
| TEAVEK (Commercial Employees) | 1 to 3 |
| TEAVDP (Shipping Agencies) | 2 |
| TEACH (Chemicals, Public – Private Employees) | 1 to 4 |
| IKA-ETEAM VAREA | 2 to 3 |
| TEAPETE (Emporiki Bank) | 2 to 8.75 |
Auxiliary IKA-ETEAM with heavy (examples with 2% contribution surcharge)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | ||
| Retrospective (from date of retirement) | |||||
| Pension in 2018 with 25 years of insurance and age 67 | 1.750 € | 196 € | 55 € | 251 € | |
| 3.969 € | 1.630 € | 183 € | 51 € | 234 € | |
| 3.697 € | 1.510 € | 170 € | 48 € | 217 € | |
| 3.425 € | 1.390 € | 156 € | 44 € | 200 € | |
| 3.153 € | 1.270 € | 143 € | 40 € | 183 € | |
| 2.880 € | |||||
| Pension in 2020 with 30 years of insurance and age 62 (full) | 2.110 € | 276 € | 76 € | 352 € | |
| 3.648 € | 1.970 € | 258 € | 71 € | 329 € | |
| 3.408 € | 1.830 € | 240 € | 66 € | 306 € | |
| 3.168 € | 1.690 € | 222 € | 61 € | 283 € | |
| 2.928 € | 1.550 € | 204 € | 56 € | 260 € | |
| 2.688 € | |||||
| Pension in 2022 with 35 years of insurance and age 60 (full) | 2.920 € | 436 € | 118 € | 554 € | |
| 5.664 € | 2.690 € | 402 € | 109 € | 511 € | |
| 5.232 € | 2.460 € | 368 € | 100 € | 468 € | |
| 4.800 € | 2.230 € | 334 € | 90 € | 425 € | |
| 4.320 € | 2.000 € | 301 € | 81 € | 382 € | |
3.888 €
| Average earnings from 2002 to 2014 for the calculation of the supplementary until 2014 and the increment | Auxiliary PPC, TEACH, TEAVEK (examples with 3% surcharge) | Pensionable salary | Auxiliary without surcharge | |||
| Auxiliary with surcharge | ||||||
| Increase | Retrospective (from date of retirement) | Pension in 2018 with 25 years of insurance and age 67 | 1.650 € | 185 € | ||
| 263 € | 78 € | 5.613 € | 1.530 € | 172 € | ||
| 244 € | 72 € | 5.205 € | 1.410 € | 158 € | ||
| 225 € | 67 € | 4.797 € | 1.290 € | 145 € | ||
| 206 € | 61 € | 4.389 € | 1.170 € | 132 € | ||
| 187 € | ||||||
| 55 € | 3.980 € | Pension in 2020 with 30 years of insurance and age 62 (reduced) | 1.870 € | 184 € | ||
| 285 € | 101 € | 4.847 € | 1.730 € | 171 € | ||
| 264 € | 93 € | 4.484 € | 1.590 € | 158 € | ||
| 243 € | 86 € | 4.121 € | 1.450 € | 144 € | ||
| 222 € | 78 € | 3.758 € | 1.310 € | 131 € | ||
| 201 € | ||||||
| 71 € | 3.396 € | Pension in 2022 with 35 years of insurance and age 60 (full) | 2.770 € | 414 € | ||
| 582 € | 168 € | 4.039 € | 2.540 € | 380 € | ||
| 534 € | 154 € | 3.703 € | 2.310 € | 346 € | ||
| 487 € | 140 € | 3.368 € | 2.080 € | 312 € | ||
| 439 € | 126 € | 3.033 € | 1.850 € | 278 € | ||
391 €
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