Social security funds back to their old tricks
Social security funds are entering the toughest period of the year, resorting to various solutions used in the past as their growing deficits make it even harder for them to cover pension payouts for December 2016 and January 2017.
These tricks are asset liquidations, borrowing from the special account for the solidarity of generations (AKAGE), requesting additional funding from the state budget, delaying the payment of dues to third parties and suspending or slowing down new pension issues.
OAEE, the fund of self-employed professionals, faces the biggest problem, having spent the last of its annual allocation of funds (834 million euros) from the state budget in late September. A ministerial decision for the allocation of an additional 350 million from AKAGE has already been signed.
The Social Security Foundation (IKA) has used up 83.9 percent of its yearly funding of 2.2 billion euros, but will need more by the end of the year, so it will likely ask for additional budget financing.