Pension payments are backdated for around 30,000 State pensioners in October.
The amounts they will receive from EFKA come from the increase they received in their pensions after their recalculation with the improved replacement rates of the Vroutsis law (n. 46670/2020) from 30 years of insurance and above.
Pensions: The recalculation
The recalculation was completed last year in November but pensioners only got the increase without the retroactives of up to 48 months, as the law’s improvements to replacement rates take effect from October 2019.
EFKA is settling this pending issue now and in the next few days the 30,000 pensioners will be paid their retroactive dues.
Beneficiaries include old-age pensioners with successive insurance (e.g. IKA and Public), pensioners who continued or took up work after retirement, as well as pensioners with parallel insurance in public and TSAU, Public and TSMEDE, etc.
The recalculation with the replenishment rates of Law 4670/2020 is more favorable for those who have 30 years of insurance or more compared to the rates that were in force under the Katrougaklou Law (Law 4387/2016).
At 35 years, the Katrougalou law gave a replacement rate of 33.81% and the Vroutsis law 37.31%. With 40 years of insurance, the replacement rate under the Vroutsi law increased to 50.01% from 42.80% under the Katrougalou law.
The amount goes up
Differences in replacement rates raise contributory pensions. A pensioner with 40 years of insurance and a salary of 1,800 euros, with the Katrougalou law he got a compensatory pension of 770 euros, while with the Vroutsi law, his pension increased to 900 euros, that is, he got an increase of almost 130 euros per month. Together with the national pension, he received 1,155 euros, and with the recalculation it reached 1,284 euros.
The replacement rates up to 30 years of insurance did not change and remained as they were determined in the Katrougalou law, as the injustice in contributions as well as in replacement rates – which was also identified in court decisions which were the reason for the law to be changed – related to pensions that the insured received from the age of 30 and over.
The difference in replacement rates brought pension increases to more than 450,000 retirees, while bringing the reduction and ultimately zeroing of the personal difference more quickly with the increases made to pensions in 2023 and 2024.
Source: ot.gr
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