A total of 198,000 insured persons, 89,000 employers and 44.3 million euros of accumulated funds from the contributions are already counted by the Auxiliary Capital Insurance Fund (TEKA), which is in its second year of operation.
According to the Ministry of Labor and Social Affairs, the progress recorded is significant and reflects the dynamics of the economy.
The reform of the supplementary insurance, which entered into force on January 1, 2022, concerns new entrants to the labor market, regardless of age, with the obligation to be covered by the supplementary insurance, while, from the beginning of 2023, the insured can also optionally be covered by TEKA under 35 years of age, if they wish.
Specifically, TEKA is already accepting online applications on the digital platform be.teka.gov.gr from insured persons in the supplementary insurance sector of e-EFKA, who were born from 1/1/1987 onwards and who wish to switch from the aforementioned sector at TEKA.
Also, the possibility of subscribing to the supplementary insurance of TEKA is also provided to workers employed in sectors for which there is no obligation to subsidize the supplementary insurance, such as self-employed professionals, farmers, etc.. This particular category of insured persons retains the right to join the TEKA , until the completion of the 35th year of age.
The new supplementary insurance system is of a capitalization nature. This means that the contributions of new employees are saved in their “personal piggy bank”, which records the insurance contributions paid by the employer for employees or by themselves, if they are self-employed, as well as the returns on investments, which correspond to in their contributions and are invested. In this way, a reserve is created from which their future pensions will be paid, instead of their contributions being used to pay the supplementary pensions of current pensioners.
Therefore, when the insured reaches the retirement stage, he will receive his supplementary pension, which will be based on the amount of his contributions and the performance of his investments.
It is pointed out that the method of calculating the supplementary pensions of current employees, who remain in the existing supplementary insurance system, is maintained as it is and the pensions of existing pensioners are not affected.
At the same time, TEKA aims to:
in strengthening the sustainability of the insurance system, mitigating the effects of the demographic problem and spreading the insurance risk,
in ensuring higher supplementary pensions for the newly insured,
in restoring young people’s confidence in the social security system and in creating strong disincentives for participation in the undeclared labor market, while seeking to contribute to the development of the Greek economy, through the investment of part of the Fund’s contributions in the domestic market. Finally, it is noted that, this year, the basic investment product of the Fund is being developed and, according to the planning, from 2025 onwards, TEKA will enter the third investment maturation phase, where the insured will choose their investment profile.
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