Retroactive payments to pensioners for the 11-month reductions deemed unconstitutional in supplementary pensions were “locked”.
This is shown by a new court decision, recently issued by the 31st Single-Member Administrative Court of First Instance of Athens, vindicating a class action of 49 pensioners of the State with retroactive payments of up to 1,776 euros, for cuts they had in the supplementary pension from the TEADY between June 2015 and May 2026.
The decision in question, with number 10856/2024 and date of issue 9/92024, which is revealed by “ET”, can be considered a qualification for the payment of retroactive supplementary pensions claimed by approximately 370,000 pensioners through legal appeals.
Decision-station
There are three reasons, according to legal circles, why this decision can be a pilot to pay retroactively to the 370,000 pensioners of all Funds, without having to wait for the trials:
1 The reasoning of the decision refers purely to unconstitutional cuts to supplementary pensions and Gifts, without connection to the decision expected by the Supreme Special Court, which will typically reaffirm the same cuts to the supplementary and all that matters is whether it will rule otherwise as to Gifts.
2 The Court of First Instance considers that the refunds that EFKA must pay to the pensioners are de facto with the corresponding interest corresponding to the amounts they claim from the date they filed their lawsuits.
3 The decision was issued despite the fact that it is customary for the Courts of First Instance to suspend trials pending the issuance of decisions by higher courts, as in this case by the AED. This means that the judges assume that the decision of the AED is not going to change anything in terms of retroactive pensions.
No Gifts
Gifts are not included in the retrospective payments that EFKA must pay to the entitled pensioners of the TEADY, for the simple reason that the TEADY does not pay gifts to all State pensioners due to its statutory provisions. For example, retired tax, customs and finance ministry officials also had Gifts in their auxiliary before they were abolished, while teachers and employees of other ministries with TEADY insurance did not receive Gifts.
However, although gifts were not paid to all TEADY’s auxiliary funds, nevertheless the court ruled overall that the reductions made by laws 4051/2012 and 4093/2012 were unconstitutional for the auxiliary funds and for the Gifts of all Funds.
In any case, after the decision of the AED, a wave of court decisions is expected for the retroactive 11-month supplementary pensions.
The assessment of the content of the decision is that the AED will recognize the validity of the decisions of the SC and will not enter into the essence of the disagreement with the Supreme Court regarding the Gifts. In practice, as legal circles explain to “ET”, pensioners who have pending lawsuits will be automatically entitled retroactively to reductions in supplementary pensions and from Gifts of main and supplementary pensions.
The payment scenarios the government is considering
Once the AED’s decision is published, the government will have to consider the scenario of statutory payments to the 370,000 pensioners who have filed claims, but also whether another 850,000 pensioners who have the same cuts to their supplementary pensions should receive a lump sum refund , but they have not filed appeals.
The Ministry of Labor is already examining how many pensioners have pending trials with lawsuits until July 2020, in order to calculate the amount of back pay they are entitled to.
Request
The issue of retroactive payments was recently raised by the Board of Public Pensioners (POPS) to the Minister of Labour, Niki Kerameos, proposing to satisfy the pensioners’ claims in installments and to those who did not file appeals. The minister reserved her position after the decision of the AED is issued and after the cost of the refunds has been examined.
According to estimates, the amount for refunds of 11 months’ reductions in supplementary pensions together with Gifts for the 370,000 pensioners who have filed appeals does not exceed 500 million euros.
If the government decides that retroactive payments should also be made to those who did not appeal, then the bill exceeds 2 billion euros.
If the pensioners who have not gone to court get a lump sum (e.g. €600), then the total cost of retroactive payments does not exceed €1.2 billion and can be repaid in instalments.
THE REFUND AMOUNTS PER CASH
| SUPPLEMENTARY PENSION BEFORE TAX | RETROSPECTIVE REDUCTIONS AND GIFTS |
| PENSIONERS IKA | |
| 294 € | 2.372 € |
| 262 € | 1.848 € |
| 235 € | 1.658 € |
| 212 € | 1.496 € |
| 201 € | 1.418 € |
| 191 € | 992 € |
| 181 € | 939 € |
| 176 € | 762 € |
| 160 € | 692 € |
| PENSIONERS OF TEN-BANK FUNDS | |
| 504 € | 4.004 € |
| 436 € | 3.514 € |
| 386 € | 3.110 € |
| 361 € | 2.908 € |
| 308 € | 2.483 € |
| 288 € | 2.031 € |
| 235 € | 1.896 € |
| 224 € | 1.575 € |
| 205 € | 1.235 € |
| PUBLIC PENSIONERS | |
| 350 € | 2.820 € |
| 323 € | 2.604 € |
| 279 € | 2.248 € |
| 233 € | 1.874 € |
| 224 € | 1.579 € |
| 199 € | 1.202 € |
| 187 € | 1.128 € |
| 175 € | 1.053 € |
| 181 € | 787 € |
| PENSIONERS OF OTHER FUNDS | |
| 341 € | 2.399 € |
| 317 € | 2.232 € |
| 286 € | 2.306 € |
| 259 € | 2.083 € |
| 241 € | 1.938 € |
| 235 € | 1.658 € |
| 215 € | 1.517 € |
| 205 € | 1.242 € |
| 154 € | 668 € |
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