In an effort to boost the finances of the Social Insurance Fund and ensure its survival now in jeopardy, the Labour Ministry is working on a number of options that will be the subject of discussions with the social partners that among others includes raising the retirement age to 63.
Labour Minister Antonis Vasiliou said he had set the viability of the Social Security Fund as a top priority and that he was hoping to reach an agreement with main trade unions PEO and SEK by the end of the year. Once current problems are smoothed out, said Vasiliou, the ministry and the trade unions must find ways to ensure the long-term viability of the fund.
Explaining the measures, Vasiliou said there needed to be an increase in employers and employees’ contribution to the fund while at the same time “we should discuss the age limit of retirement”.
He added: “If this is not possible, we need to find other ways, so that someone’s contribution to the fund is bigger, therefore entitling him to enjoy the benefits of the pension fund”.
Asked when the alteration of the retirement age was going to be implemented, Vasiliou said his ministry had not given much emphasis to the matter as it was a “government decision, which means it will be decided by the Cabinet”.
“We are waiting on the two basic trade unions SEK and PEO to conclude the study they have appointed to an expert, so we can begin a new circle of negotiations, with the aim of reaching a new agreement concerning the Social Security Fund by the end of the year, not only for this generation, but also the next generations.”
Finance Minister Michalis Sarris also commented on the matter following his ministry’s conference yesterday with all political parties and the Advisory Finance Committee to discuss the Republic’s convergence plan, which will be submitted to the European Commission on December 1, for the period 2007-2013.
He said the fund had been discussed during the meeting and it was agreed that “the good dialogue should continue between the Labour Ministry and the community groups and a combination of measures should be prepared to ensure its long-term viability”.
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