Massive cuts on pensions from 2015

With losses of up to 30% for some, thousands of pensioners will see their wallets losing more weight from 2015.

The calculation of pensions from 2015 onwards will be done under a gross system for the basic and proportional pensions, which will naturally lead to a reduction of benefits for pensioners.

This is actually the Loverdos - Koutroumanis law that is fundamentally changing the way of calculating pensions. The change starts in 2015, but those who retire from that year onwards will be included in the new system retrospectively for 2011-2015.

As the story of “Ta Nea” reports, the setting will be applied as follows:

- the application of the basic pension will start from 2015 and its height will be at 360 euro

- for the calculation the proportional pension authorities will take into account the entire working life of the pensioner

- there will be a transition period for those who retire from 2015 onwards

- the basic and proportionate pensions will be given for 12 months a year, that is there will be no 13th and 14th pensions anymore

- the replacement rate along with the basic pension will amount to 64% of a person’s pensionable earnings

What has been shown by predictions so far

The replacement rate along with the basic pension, according to the Ministry of Labour officials, will amount to 64% of all pensionable earnings. It should be noted that the current replacement rates fluctuate at quite higher levels of 74% and above.