For additional contributions, the law provides for a pension increase at a rate of 0.075% for each year and for each unit of additional contribution above 6%. In some funds such as those of the former Emporiki Bank pensioners (TEAPETE) the total supplementary insurance contributions (employee and employer) reached 14.75% of their monthly salaries, i.e. they were more than double the 6% of the “normal” contribution.
In other funds the supplementary insurance contributions reached 12%, and so on.
However, the supplementary pensions of all those who had paid the extra contributions were calculated as if they had paid the normal contribution of 6% without the pension supplement from the extra contributions having been paid, because EFKA had not prepared the appropriate software program to make the required recalculations.
This chapter opens now as EFKA is able to proceed with the recalculation of thousands of supplementary pensions by giving the corresponding 0.075% surcharge for contributions above 6%.
Caution: Based on the changes introduced by the “Katrugalou” law for applications from 1/1/2015 onwards the auxiliaries have a double calculation, one for the insurance years up to 2014 and a second calculation for the years from 1/1/2015 onwards . The years until 2014 are calculated with a single replacement rate of 0.45% for each year until 2014, 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 supplementary pensions for the additional contributions will concern the first part of the pension for the years up to 2014, as from 2015 onwards the insured with additional contributions have the same calculation as those who pay 6%. The difference is that the more contributions they pay, the higher will be the supplementary corresponding to the years from 2015 onwards.
The 0.075% surcharge for supplementary pensions will be calculated on pensionable earnings for the period 2002-2014 as follows:
*A pensioner who paid 10% contribution instead of 6% for supplementary insurance for a period of 30 years and retired in 2019, will get the increase of additional contributions for the supplementary part until 2014. From 30 years, 25 years are until 2014 and his pensionable earnings for the period 2002-2014 are 1,800 euros. The supplementary pension for the 25 years until 2014 without the increase is calculated with a replacement rate of 0.45% and comes to 202.5 euros. Next, the additional contribution will be calculated with 0.075% for the additional contributions beyond 6%, i.e. for contributions of 4%. The formula of the increase is: pensionable earnings Last year X additional contribution X 0.075%. Based on the formula, the increase corresponding to the additional contributions is 168.76 euros and the total supplementary for the years up to 2014 amounts to 371.26 euros (202.5+168.76=371.26). The second part of the pension concerns the 5 years from 2015 to 2019 which has no increase as only the contributions and the retirement age count. If the insured person continued to pay a 10% contribution for the supplementary insurance for these 5 years and his earnings were on average 2,400 euros, then with a retirement age of 62, he will receive a supplementary supplement of 68 euros. Therefore, his total pension will amount to 439.26 euros. However, the amount he receives today is 202.5 euros until 2014 and 68 euros after 2015, without the increase of 168.76 euros.
The increases resulting from the increment can reach up to 400 euros depending on the years and the pensionable salary until 2014.
From the examples and revealing tables published by the insert “Insurance and Pensions” with indicative amounts of supplementary pensions before and after the 0.075% increase, it appears that depending on the age and the year of retirement the retrospective of the increases that the supplementary pensions will have reach up to 6,720 euros.
For example:
1. A pensioner with supplementary insurance from a bank fund left in 2019, with 28 years of which 24 were until 2014 and paid a contribution of 10% instead of 6% for supplementary insurance. He retired at 60 with a pensionable salary of 2,300 euros. He is entitled to a surcharge of 0.075% for the additional 4% contribution he paid to the supplementary insurance. The pension he received without the increase came to 278 euros, while with the increase he will get 437 euros. The increase is 159 euros and the retrospective 9,522 euros.
2. A pensioner with supplementary insurance from PPC left in 2018, with 30 years of which 27 were until 2014 and paid a contribution of 10% instead of 6% for supplementary insurance. He retired at 60 with a pensionable salary of 2,610 euros. He is entitled to a surcharge of 0.075% for the additional 4% contribution he paid to the supplementary insurance. The pension he received without an increase came to 390 euros, while with the increase he will get 625 euros. The increase is 235 euros and the retrospective 16,913 euros.
3. A pensioner with supplementary insurance from a bank fund left in 2019, with 35 years of which 30 were until 2014 and paid a contribution of 10% instead of 6% for supplementary insurance. He retired at 60 with a pensionable salary of 3,040 euros. He is entitled to a surcharge of 0.075% for the additional 4% contribution he paid to the supplementary insurance. The pension he received without an increase came to 463 euros, while with the increase he will receive 736 euros. The increase is 274 euros and the retrospective 16,416 euros.
4. A 37-year-old pensioner who retired in March 2022 with a pensionable salary of 3,460 euros at the age of 63 has paid an increased contribution for the auxiliary 10% instead of 6%. He is entitled to an increase of 0.075% which has not been calculated and he receives an additional pension of 555 euros without the increase of the additional contributions. The auxiliary will be recalculated with the 0.075% increase to which he is entitled, and will be 856 euros, with an increase of 301 euros and with retroactive 24 months from March 2022 when he retired until today which amount to 7,224 euros.
WON
The beneficiaries of the top-up are mainly pensioners from bank funds after 2016. The top-up of 0.075% for each additional unit of contribution was calculated on the main pensions, but not on their supplementary pensions. Now it will also be calculated on the auxiliaries retroactively from the date they retired
LOST
In contrast to the new pensioners, the older ones do not get the increase of the additional contributions neither in the main pensions, nor in the supplementary ones. The law separated the two categories and the old ones are among the lost. We have two-speed pensioners and even from the same funds.
The miscalculation of insurance years has been seen in too many cases of the original pension recalculation under the Katrougalou law as it rounded down and ate up the months that had been calculated when the retirees took their original pension! These mistakes continued with the recalculation of the Vroutsis law. For example, a pensioner received a pension before the Katrougalou law with 37 years and 4 months, but his pension was recalculated with 37 years and 4 months “forgotten”. The mistake was not corrected and EFKA already owes the pensioner who comes from TSPEATH, close to 3,500 euros retroactively!
SUPPLEMENTARY PENSION RETROSPECTIVES FROM THE 0.075% INCREASE FOR 10% CONTRIBUTIONS
Auxiliary with 28 years (retired in 2019 at age 60)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | Retrospective 60 months |
| 1.700 | 215 | 332 | 117 | 7.038 |
| 1.800 | 219 | 343 | 124 | 7.452 |
| 1.900 | 231 | 362 | 131 | 7.866 |
| 2.000 | 242 | 380 | 138 | 8.280 |
| 2.100 | 254 | 399 | 145 | 8.694 |
| 2.200 | 266 | 418 | 152 | 9.108 |
| 2.300 | 278 | 437 | 159 | 9.522 |
| 2.400 | 290 | 456 | 166 | 9.936 |
| 2.500 | 302 | 475 | 173 | 10.350 |
| 2.600 | 314 | 494 | 179 | 10.764 |
Auxiliary with 30 years (retired in 2018, age 60)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | Retrospective 72 months |
| 1.800 | 275 | 437 | 162 | 11.664 |
| 1.890 | 283 | 453 | 170 | 12.247 |
| 1.980 | 296 | 474 | 178 | 12.830 |
| 2.070 | 310 | 496 | 186 | 13.414 |
| 2.160 | 323 | 517 | 194 | 13.997 |
| 2.250 | 336 | 539 | 203 | 14.580 |
| 2.340 | 350 | 560 | 211 | 15.163 |
| 2.430 | 363 | 582 | 219 | 15.746 |
| 2.520 | 376 | 603 | 227 | 16.330 |
| 2.610 | 390 | 625 | 235 | 16.913 |
Auxiliary with 32 years (retirement in 2021, age 61)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | Retrospective 36 months |
| 2.150 | 298 | 459 | 161 | 5.805 |
| 2.270 | 313 | 483 | 170 | 6.129 |
| 2.390 | 329 | 508 | 179 | 6.453 |
| 2.510 | 345 | 534 | 188 | 6.777 |
| 2.630 | 362 | 559 | 197 | 7.101 |
| 2.750 | 378 | 584 | 206 | 7.425 |
| 2.870 | 394 | 610 | 215 | 7.749 |
| 2.990 | 411 | 635 | 224 | 8.073 |
| 3.110 | 427 | 660 | 233 | 8.397 |
| 3.230 | 443 | 685 | 242 | 8.721 |
Auxiliary with 35 years (retirement in 2019, age 60)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | Retrospective 60 months |
| 2.110 | 324 | 513 | 190 | 11.394 |
| 2.200 | 336 | 534 | 198 | 11.880 |
| 2.290 | 349 | 555 | 206 | 12.366 |
| 2.380 | 363 | 577 | 214 | 12.852 |
| 2.470 | 377 | 599 | 222 | 13.338 |
| 2.560 | 390 | 621 | 230 | 13.824 |
| 2.680 | 408 | 649 | 241 | 14.472 |
| 2.800 | 426 | 678 | 252 | 15.120 |
| 2.920 | 445 | 707 | 263 | 15.768 |
| 3.040 | 463 | 736 | 274 | 16.416 |
Auxiliary with 37 years (retirement in 2022, age 63)
| Pensionable salary | Auxiliary without surcharge | Auxiliary with surcharge | Increase | Retrospective 24 months |
| 2.200 | 355 | 546 | 191 | 4.594 |
| 2.340 | 377 | 581 | 204 | 4.886 |
| 2.480 | 399 | 615 | 216 | 5.178 |
| 2.620 | 422 | 649 | 228 | 5.471 |
| 2.760 | 444 | 684 | 240 | 5.763 |
| 2.900 | 466 | 718 | 252 | 6.055 |
| 3.040 | 488 | 753 | 264 | 6.348 |
| 3.180 | 510 | 787 | 277 | 6.640 |
| 3.320 | 533 | 822 | 289 | 6.932 |
| 3.460 | 555 | 856 | 301 | 7.224 |
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