Extra pension up to 754 euros due to high contributions 2024-03-09 03:08:10

The beneficiaries of the extra contributions are all the insured, whether they started to be insured before or after 1993. As long as they paid extra contributions to their Funds, for every 1% extra contribution they earn an increase in the replacement rate at a rate of 0.075% for each year.

The pension bonus from increased contributions applies to those who retire from 13/5/2016 onwards, and in particular to four categories of insured persons, which are as follows:

1. Insured in DEKO-bank Funds who pay pension contributions higher than the 20% that applies to employees for almost their entire working life. For this category of insured, the pension is calculated with an employee and employer contribution of up to 35% instead of the 20% that applies to all others. For this category, higher contributions are also provided for the supplementary insurance (e.g. 12% instead of 6%), which give a corresponding increase in the supplementary pension.

2. Insured in two Funds at the same time until 2016 and with a single contribution to EFKA from 1/1/2027 onwards. In the case of parallel insurance, the time spent in two Funds until 2016 is calculated either as a pension supplement (which benefits most) or as a second compensatory pension. The extra pension contribution to the parallel insurance is 20%.

3. Insured with contributions for heavy and unhealthy in the private sector (IKA), with an additional pension premium of 3.6% (total 23.6%).

4. Insured with contributions for heavy and unhealthy in the municipalities with an additional pension premium of 4.5% (total 24.5%).

The extra contributions are paid both by the old insured up to 1992 and by the new insured after 1/1/1993.

In the DEKO and bank Funds the extra pension contributions had reached (National Bank Fund) as much as 37.5% and started to decrease gradually after 2012 to reach 20% from 2020 onwards.

In parallel insurance with two Funds, the insured paid separate contributions to two Funds until 2016 and the insurance period until 2016 is calculated separately in each Fund. For the parallel insurance until 2016, the insured benefit from receiving a compensatory pension from the Fund with the longest period of insurance and an increase at a rate of 0.075% for the years of insurance in the second Fund.

From 2017, with the inclusion of the old Funds in the EFKA, the insurance period is uniform and the additional contributions paid by the insured to two Funds (e.g. TSAU and State) increase the compensatory pension.

For example, insured with parallel insurance in the State and TSAV until 2016 and with EFKA (with double contributions) from 2017, establishes the right to retire in 2024 when he completes 40 years and turns 62 years old. He had 32 of the 40 years with two Funds until 2016 and the other 8 in EFKA from 2017 to 2024. He will receive a compensatory pension which will be calculated for 40 years of insurance in the Fund with the best earnings (p .e. Public) and an increase for the insurance in the second Fund (e.g. TSAU) for 32 years of contributions until 2016. If we assume that as an insured person in the TSAU his pensionable earnings based on the contributions come to 1,000 euros, then the increase pension he will receive amounts to 480 euros.

For those insured in heavy insurance, the increase due to the additional contributions goes directly to the replacement rate. For example, a heavy insured for 35 years and a premium of 3.6% has a normal replacement rate of 37.31%. However, due to the heavy ones, the final percentage will increase by 9.45% and will be 46.76%. If he has pensionable earnings of 1,800 euros, the pension he will receive (compensatory plus national) will amount to 1,267.85 euros. Without burden, the pension would be 1,097.95 euros. The profit in this particular example from the extra contributions of heavy goods is 170 euros.

CAUTION: By law provision in 2018 there was a significant reversal for those insured with heavy benefits in the IKA, as it was foreseen that if they take advantage of the heavy provisions to retire 5 years earlier, i.e. at 62 instead of 67, they will not receive the increase, while if they retire at 67, then they will get the heavy increase and the pension will be higher.

This overturning only applies to the heavy IKA and not to the heavy in OTAs or the heavy for certain specialties of workers in DEKO (PPC, OTE, etc.).

WHAT THEY CAN CLAIM

Why were the old ones left out of the increase?

The pension increase at a rate of 0.075% from extra contributions applies only to those who retire from May 2016 onwards and not to old pensioners who receive the recalculated pensions. The provision is provided for in law 4387/2016 (Katrougalou law) and in law 4670/2020 (Vroutsi law), which also improved pensions from 30 years of insurance and above.

Although appeals were made to the courts by old DEKO pensioners to claim an increase in their pension from their extra contributions, so far no decision has been issued in their vindication.

The injustice is greater for old pensioners, who were simultaneously insured in two Funds, but without reaching the 16 years of parallel insurance, which would have given them the right to receive a second pension at 67. These pensioners can still claim increases today including their double contributions or to claim a refund of their contributions, provided that their claims are not time-barred.

Pension benefits from extra contributions can be seen in the revealing table edited and published by “Eleftheros Typos”.

For example:

1. Insured for 35 years in a DEKO or bank Fund, of which for 20 years he had extra contributions of 15%, he will receive a pension with a replacement rate of 59.81% due to the premium from the extra contributions. With a pensionable salary of 2,661 euros, the pension for 2024 is 2,065 euros gross, while the normal pension (without the extra contributions) would be 1,419 euros. The profit from the additional contributions is 646 euros more pension per month!
2. Insured for 39 years, of which for 20 years he had extra pension contributions of 15%, he will get a pension with a replacement rate of 69.96%, with a premium from the extra contributions. With a pensionable salary of 3,104 euros, the pension for 2024 is 2,663 euros gross, while without the extra contributions the pension is 1,899 euros. The profit from the extra contributions reaches 754 euros per month!

The premium on pensions from DEKO-bank Funds with extra contributions of 15% for 20 years

Pensionable salary 2024	Pension with 35 years		Pension with 37 years		Pension with 39 years
	With extra contributions (59,81%)	Without the extra contributions (37.31%)	With extra contributions (64.86%)	Without the extra contributions (42.36%)	With extra contributions (69.96%)	Without the extra contributions (47.46%)
2.366	1.884	1.309	2.007	1.428	2.131	1.549
2.439	1.929	1.336	2.056	1.459	2.184	1.584
2.514	1.975	1.364	2.106	1.491	2.238	1.619
2.588	2.020	1.392	2.155	1.522	2.291	1.654
2.661	2.065	1.419	2.204	1.553	2.344	1.689
2.734	2.110	1.446	2.253	1.584	2.396	1.724
2.809	2.157	1.474	2.303	1.616	2.450	1.759
2.956	2.247	1.529	2.401	1.678	2.556	1.829
3.029	2.292	1.556	2.450	1.709	2.609	1.864
3.104	2.338	1.584	2.500	1.741	2.663	1.899

* In parentheses are the replacement rates. Gross pension amounts.

Pensionable earnings	Pension increase depending on the years of parallel insurance
	With 27 years	With 29 years	With 31years	With 35 years
980	397	426	456	515
1.100	446	479	512	578
1.220	494	531	567	641
1.340	543	583	623	704
1.460	591	635	679	767
1.580	640	687	735	830
1.700	689	740	791	893