Pension funds face
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