IKA a threat to pen­sion sys­tem

So­cial Se­cu­rity Foun­da­tion ap­pears in­ert, mired in deficit and debts, and will com­pli­cate the new setup

Kathimerini English - - Focus - BY ROULA SALOUROU

The So­cial Se­cu­rity Foun­da­tion (IKA) is the so­cial se­cu­rity sys­tem’s ball and chain, as just a cou­ple of months be­fore its in­cor­po­ra­tion into the new Sin­gle So­cial Se­cu­rity En­tity (EFKA), its em­ploy­ees are warn­ing about the lev­els of its rev­enues and pay­outs.

Gior­gos Kyr­i­akopou­los, the head of the IKA work­ers’ union, told a con­fer­ence yes­ter­day that the so­cial se­cu­rity sys­tem is turn­ing into a setup of doubt­ful so­cial ef­fi­ciency, as the La­bor Min­istry’s law has led to a ma­jor cut in new pen­sions, while in some cases, such as wid­ows’ pen­sions, it is lit­tle more than a to­ken ges­ture, given that they do not ex­ceed 150 euros.

Privy to in­sider in­for­ma­tion on all the sys­tem’s prob­lems, the head of the IKA union is­sued a stark warn­ing about EFKA, es­ti­mat­ing that on Jan­uary 1, prob­lems in com- plet­ing the process for the sin­gle en­tity will turn trans­ac­tions with the new hy­per-fund into a night­mare both for its em­ploy­ees and the peo­ple in­sured in it.

Re­gard­ing wid­ows’ pen­sions, al­though the nec­es­sary cir­cu­lar has not yet been pub­lished by the min­istry, leav­ing at least 6,400 such ben­e­fits up in the air, they will be dra­mat­i­cally slashed when they are fi­nally is­sued, as against the min­i­mum level of 430 euros per month their new amount will be just 150 euros.

IKA work­ers also re­vealed dur­ing yes­ter­day’s con­fer­ence that many de­ci­sions for the is­sue of pen­sions are recorded with pen and pa­per rather than on­line.

They also stressed that, to date, no cir­cu­lar has been re­leased for the cal­cu­la­tion of pen­sions ac­cord­ing to the new law (No 4387 of 2016), so that many of the 9,990 ap­pli­ca­tions for pen­sions sub­mit­ted 581.56 1.1095 within this year can­not be is­sued.

The num­ber of pend­ing de­ci­sions at IKA con­cerns 60,493 main pen­sions (in­clud­ing 10,130 dis­abil­ity pen­sions and 9,023 wid­ows’ pen­sions) and 61,654 aux­il­iary pen­sions. IKA will end the year with a deficit of more than 800 mil­lion euros, while it also owes 1.1 bil­lion euros to the Health­care Ser­vice Pro­vi­sion Or­ga­ni­za­tion (EOPYY) and a sim­i­lar amount to the Man­power Or­ga­ni­za­tion (OAED).

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