Greece Commits to Pension Pact Proposals
21 February 2012 (PLANSPONSOREurope.com) - The European Commission has confirmed to PLANSPONSOR Europe that Greece has committed to pension changes which include reform of supplementary pension funds.
An EC spokesperson told PLANSPONSOR Europe that Greece will adopt the changes, outlined in a memorandum of understanding earlier in the month. The changes commit Greece to changes in supplementary pension funds and pension funds with high average pensions or which receive high subsidies from the budget, saving at least 300 euros net after taking into account the impact on taxes and social contributions in the process.
The revision aims to stabilise pension expenditure, guarantee the budgetary neutrality of these schemes, and ensure medium- and long-term sustainability of the system and it is hoped it will achieve:
• the elimination of imbalances in those funds with deficits;
• the unification of all existing funds;
• reduction of overall operational and payroll costs including an adequate reduction in staff headcount (by at least 30% in the new single fund;
• the long-term sustainability of secondary schemes through a strict link between contributions and benefits.
Further details on the pact can be found herehere: http://www.plansponsor.com/Greek_Pensions_Pact_Details_Revealed.aspx