Special contribution of 10% in favor of e-EFKA should withhold from them salaries of thousands of pensioners who are also working, their employers at the end of the current month. This development follows the Georgiadis Law, according to which the specific category of disabled workers will receive the entire pension. At the same time, a circular of the Unified Insurance Agency clarifies the upheavals coming to the status of working pensioners with disabilities.
In particular, the paragraph that defined that “if the disability pensioners of the main insurance institutions, take up work or are self-employed, and earn, depending on the degree of their disability, more than what a healthy employee earns, according to the general terms of remuneration, their pension is suspended or their pensions, principal and subsidiary”
The upheavals in the status of working pensioners with disabilities
This practically means that from 1.1.2024 the control of the insurance bodies regarding the amount of wages/income from work/self-employment of pensioners due to disability (due to a common disease, accident at work, accident outside of work, occupational disease) and disability pensions will cease. are paid regardless of the amount of income/salary and casual or non-permanent work mandatorily subject to e-EFKA insurance.
In fact, there will also be a decision for working pensioners with disabilities to be employed without being burdened with the 10% resource in favor of EFKA.
It should be noted that the abolition of the 30% pension cut applies to all working pensioners from January 1, 2024.
For this reason, 50,000 working pensioners received their entire pension before Christmas, as the Georgiadis law was implemented, which was passed just before the holidays.
How will the e-EFKA contribution be paid?
Of course, at the end of January, their employer will have to withhold from their salary, a special contribution of 10%, which will be paid to EFKA, within February, alongside the Analytical Periodic Statement (APD).
Based on the planning, through the APD that the employer submits every month, the withholding of a contribution of 10%, in addition to the prescribed contributions, will be declared in order to be paid to the EFKA.
The Ministry of Labor and EFKA are working on the changes required, in order to open a special platform on which the pensioners concerned will declare that they are working or that they wish to work.
Accordingly, there should be a special field in the APD, in which it will automatically be declared that the specific employee is retired, in order to withhold the additional 10%.
What the e-EFKA circular provides for working pensioners
In any case and pending the relevant ministerial decisions, circular 1/2024 of the e-EFKA was published, on the subject: “New legal framework for the employment of pensioners in their own right (due to old age/disability), with the replacement of article 20 of the 4387/2016 (A΄ 85). Notification of the provisions of article 114 of Law 5078/2023 with the provision of instructions.”
The new circular states:
A. INTRODUCTION
A. 1. Publication of the provisions of Law 5078/2023 “Professional insurance reform, rationalization of insurance legislation, pension arrangements, system of appointment and recruitment of teachers of the Public Employment Service and other provisions.”.
We inform you that in Official Gazette A’ 211/20-12-2023 the provisions of Law 5078 were published. With Article 114 of this Law, which is included in Section B “Insurance Legislation Reform”, of Part B “PENSION – INSURANCE REGULATIONS – REGULATIONS ON MATTERS OF THE ELECTRONIC NATIONAL SOCIAL INSURANCE BODY AND OTHER INSURANCE FUNDS”, of Chapter A “Pension arrangements”, Article 20 of Law 4387/2016 was replaced and a new framework was established for the employment of pensioners in their own right (due to old age/disability) .
Paragraph a of Article 112 of Law 5078/2023 states that the purposes of this Section include encouraging retirees to rejoin the labor market and increase their income without creating disincentives for young people.
A’2. Authorizing provisions
Chapter IX of the same law includes the empowering, transitional and repealed provisions.
According to par. 1 of article 154 (“Authorizing provisions”), “By decision of the Minister of Labor and Social Security, the conditions, terms and procedure for collecting the insurance contributions and the e-EFKA resource, the cross-checking procedure and control of the data related to the pension and remuneration from the insurable employment, the start time and the method of collection of the resource through a work ticket, the creation of an electronic platform for the declaration of employment of par. 10 of article 114 and the ascertainment of the contribution of the exceptions of paragraphs 5 and 6 of article 114, as well as any other technical or detailed issue for the application of article 114.”
Therefore, with regard to the issues regulated by the above Ministerial Decision, separate instructions will follow from the competent General Directorates.
A.3. Repealed provisions
A. 4. Effectiveness
The validity of article 114 begins on 1.1.2024. Especially paragraph 7 which refers to the utilization of employment time, applies retroactively from 13.5.2016 (Section E’ – entry into force, article 195 paragraph 7).
B. Application of the provisions of article 114
Next, we list detailed instructions regarding the implementation of the provisions of article 114, regarding the matters that fall under the competences of the General Directorate of Pensions, i.e. par. 1, 2 sec. a, c, 7 ed. a,b, 8, 10 ed. a, b.
B. 1. Scope-Regulation-Exceptions (par. 1, 2)
During the post-retirement period of employment that is compulsorily subject to the Agency’s insurance, e-EFKA pensioners continue to receive the full main and supplementary pension to which they are entitled from the Agency:
a) due to old age. As an exception, the right-of-way main and auxiliary pension due to old age is suspended for as long as employment is provided mandatorily subject to the e-EFKA insurance in a General Government Body, as long as the pensioner has not reached the sixty-second (62) year of age. The age limit of suspension may be adjusted in accordance with par. 3 of article 11 of Law 3863/2010 (A’ 115). (par. 2)
It is reminded that the register of General Government Agencies is compiled and updated by the Hellenic Statistical Authority based on the criteria of the new EU Regulation. 549/2013 (European System of Accounts 2010 – European System of Accounts (ESA 2010)).
b) due to old age due to the disability of Law 612/1977 (A’ 164) and the laws referring to it.
c) of the third paragraph of para. a’ of par. 1 of articles 1 and 26 of the p.d. 169/2007 (A’ 210). For this category of pensioners, you will be informed by the General Directorate of Public Sector Pensions.
d) due to disability. Especially with regard to disability pensions (from common disease, occupational accident, accident outside work, occupational disease) the following are highlighted:
As mentioned above, paragraph 4 of article 63 of Law 2676/1999 (A’1) is expressly repealed, as applicable with paragraph 1 of Article 16 of Law 3863/2010.
It is recalled that par. 4 defined that “If the disability pensioners of primary insurance institutions, take up work or are self-employed, and earn, depending on the degree of their disability, more than what a healthy employee earns, according to the general remuneration conditions, the pension is suspended them or their pensions, main and auxiliary.”
Therefore, from 1.1.2024, the control of the insurance bodies regarding the amount of wages/income from work/self-employment of pensioners due to disability (due to common disease, accident at work, accident outside work, occupational disease) ceases and disability pensions are paid independently of the amount of income/salary and casual or non-permanent work mandatorily subject to e-EFKA insurance.
It is further clarified that from the combination of the provisions of paragraph 1 of article 114 and paragraph h of article 156, it follows that the abolition of the control of wages/income for employed pensioners due to disability applies from 1.1.2024 and covers all cases of pensioners due to disability who work from this date onwards, regardless of the time point of taking up work (before or after 1.1.2024).
Paragraph 1 of article 23 of Law 4488/2017 (A’ 137), as applicable, on the non-application of the general and special provisions that provide for the interruption or reduction of the disability pension or the death pension and welfare or other of benefits to retirees who take up work for reasons of psychosocial rehabilitation and social reintegration, applies in parallel and independently of the provisions of article 114 of Law 5078/2023.
It is recalled that, in accordance with the provision of paragraph 1 of article 11A of law 4387/2016, which was added to article 11 of this law by article 26 of law 4997/2022, for the awarding of a main disability pension by common illness requires – apart from the other conditions defined in the said provision – the interruption of the work subject to the employment insurance in any way.
B 2. Utilization of the insurance time of an employed pensioner (par. 7, 8)
After the termination of employment, the insurance time created by the pensioner’s employment is used to increase the already paid pension, upon his request. The amount of the supplement for the main pension is calculated based on the replacement rates and pensionable earnings of Articles 8 and 28 of Law 4387/2016 and only for the period of employment.
The financial results of the increase start from the first day of the following month of submission of the pensioner’s relevant application. The resource in favor of e-EFKA, where it is paid in accordance with the notified provisions, is not remunerative and is not used to increase the already paid pension or to grant a second pension. (par. 7)
In the same way, working time or self-employment or part of it is utilized, whenever and if it was spent by the employed pensioners on 12.5.2016 who continued their work or self-employment uninterruptedly when law 4387/2016 came into force.
The utilization presupposes that the previous provisions of Law 4387/2016 provided for the utilization of employment time, which, as mentioned above, is carried out in accordance with the provisions of paragraph 7 of the notified article. (par. 8)
B.3. Obligation to declare an employed pensioner to e-EFKA (par. 10)
The pensioners of the e-EFKA in their own right [λόγω γήρατος, λόγω αναπηρίας (από κοινή νόσο, εργατικό ατύχημα, ατύχημα εκτός εργασίας, επαγγελματική νόσο) και γήρατος λόγω αναπηρίας του ν. 612/1977 (Α’164) και των νόμων που παραπέμπουν σε αυτόν, καθώς και του τρίτου εδαφίου της περ. α’ της παρ. 1 των άρθρων 1 και 26 του π.δ. 169/2007 (Α’ 210)], are obliged, before taking up employment subject to e-EFKA, to declare it to the Agency. Failure to report results in a monetary penalty equal to twelve (12) monthly pensions, main and auxiliary.
C. GENERAL
With regard to the conditions, the conditions and the procedure for collecting the insurance contributions and the resource for e-EFKA, as defined in article 114, the procedure for cross-checking and checking the data related to the pension and the remuneration from the insurable employment, the starting time and the method of collection of the resource through work sign, the creation of an electronic platform for the declaration of employment of par. 10, the determination of the assistance of the exceptions of par. 5 and 6 thereof, as well as any other technical or detailed issue for the implementation of article 114, you will be informed by a separate document from the competent General Directorates of e-EFKA.
All co-competent employees should take cognizance of the notified provisions and the circular in question, under the responsibility of the head of the service unit where they serve.
Source: enikos
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