titioners (ETAA for physicians, engineers,
lawyers), farmers (OGA) and seamen (NAT).
The SSSE is now the main social security and
pension fund, and operates on the basis of uni-
fied contributions and benefits since 1/1/2017.
That said, the abolition of the previous funds
has not yet been completed, since retirement
rules continue to vary, depending on the provi-
sions of each fund’s statute. In 2017, however,
EFKA will establish uniform retirement and
pension provisions, following the issuance of a
Presidential Decree on the implementation of a
new Social Security and Benefits regulation.
The new fund’s budget for 2017 –its first–
shows a 1.1 billion euro deficit, which is,
nonetheless, expected to be lower at the end
of the year.
2. Established a National Pension.
The full
amount has been set at 384 euros per month,
payable to those leaving the workforce at the
full pension retirement age, with at least 20
years of work. The full pension retirement age
is set at 67 years with at least 15 years of work,
T
his new pension reform is a product of
the fiscal adjustment programme that
was adopted by the Greek government in
August 2015, laying out the measures of the third
memorandum, as well as the commitments ema-
nating from the latest package of financial assis-
tance to Greece, provided for by Law 4336/2015.
All Greeks are affected by these 10 changes in
the social security system.
The implementation of the new law, however, is
laden with obstacles and technical problems,
which hold back the progress of the reforms and,
in particular, the transition from the previous to
the new pension regime.
The changes brought about by law 4387/2016
in the social security and pension systems:
1. Created EFKA.
This is a single social security
agency, which replaces 6 separate funds that
were operating till 31/12/2016. The Single
Social Security Entity (Greek acronym EFKA)
absorbed all existing pension and social securi-
ty funds of private (IKA) and public sector wage
earners, freelance professionals (OAEE), prac-
Trade with Greece
86
What has
changed in the
Greek pension
system
By Kostas Katikos
The new social security system, which
was enacted in the form of Law
4387/2016 and came in force on May
13, 2016, brought about ten major
changes in the lives of millions of Greek
workers and pensioners.
