Gov’t fears squeeze from likely lump sum rul­ing

Kathimerini English - - Front Page -

In the wake of a leaked de­ci­sion by the Coun­cil of State deem­ing wage cuts im­posed on mem­bers of the armed forces and emer­gency ser­vices to be un­con­sti­tu­tional, the court is con­sid­er­ing ap­peals by other groups of civil ser­vants against re­duc­tions to the lump sums they re­ceive on re­tire­ment, Kathimerini un­der­stands.

The ap­peals be­ing weighed by the coun­try’s high­est ad­min­is­tra­tive court have been lodged by civil ser­vants but also by so­cial se­cu­rity funds, ac­cord­ing to sources.

The Fi­nance Min­istry is al­ready scram­bling to find some 500 mil­lion eu­ros in rev­enue to re­turn with­held wages to mil­i­tary and se­cu­rity ser­vices staff ahead of a for­mal court verdict on that case. Al­though ju­di­cial sources in­di­cated last week that mil­i­tary and se­cu­rity ser­vices staff were be­ing re­garded as a spe­cial case that would not set a le­gal prece­dent, it ap­peared that more ex­emp­tions might be granted. This would oblige the gov­ern­ment to find more rev­enue even as the troika pushes for spend­ing cuts.

Un­ease in the gov­ern­ment has been fu­eled by a rul­ing by the Euro­pean Court of Hu­man Rights ac­cord­ing to which a re­tire­ment lump sum con­sti­tutes part of a pen­sioner’s per­sonal wealth, as it has been gen­er­ated through the lat­ter’s con­tri­bu­tions, and that any re­duc­tion to that sum is a vi­o­la­tion of their rights.

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