Pen­sion funds face

Financial Mirror (Cyprus) - - FRONT PAGE -

Greek pen­sion funds have lost 32 bln eu­ros since the be­gin­ning of the cri­sis and are fac­ing a fund­ing gap of 5.1 bln eu­ros, but the collection of so­cial se­cu­rity con­tri­bu­tions is im­prov­ing, ac­cord­ing to new fig­ures.

Dur­ing the an­nual con­fer­ence of the Con­fed­er­a­tion of Pen­sion Fund Work­ers (POPOPK), its chair­man out­lined some key fig­ures that in­di­cate a rather bleak out­look for the so­cial se­cu­rity sec­tor in 2014.

Ac­cord­ing to the data pre­sented, so­cial se­cu­rity funds face a fund­ing gap of 5.1 bln eu­ros, which stems from the bud­geted deficit for 2014 (2 bln) and the cost of un­paid pen­sions and lump sums to more than 380,000 new pen­sion­ers (3.1 bln).

The largest part (808 mln eu­ros) of the an­tic­i­pated deficit lies with IKA, the largest so­cial se­cu­rity fund, which cov­ers 5.53 mln people and pro­vides 830,000 pen­sions. POPOPK data show that rev­enues have fallen by 8.2%, while the stock of un­paid con­tri­bu­tions amounted to 8 bln eu­ros, of which half can be con­sid­ered non-re­cov­er­able.

The sec­ond largest deficit con­trib­u­tor is the pen­sion fund of self-em­ployed and free­lancers (OAEE) with a deficit of 463 mln eu­ros, which could rise to 720 mln. Ac­cord­ing to POPOPK, out of the 750,000 people in­sured with OAEE, 370,000 are not pay­ing their con­tri­bu­tions and

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