The Minister of Labor and Social Affairs, Kostis Hatzidakis, presented today the basic principles of the bill for the modernization of the Unified Social Security Agency (EFKA). The text of the bill will be given for public consultation in the next few days, after some technical issues are settled, after consultation with the relevant ministries. The goal is to be voted by the Plenary Session of the Parliament within January 2022.
According to the Ministry of Labor and Social Affairs, the focus is on eight major interventions, which radically change the operation of EFKA:
«1. Newly selected executives from public and private sector. Specifically, it is possible to hire selected managers with three-year contracts, with the possibility of one-time renewal from both the public and the private sector with transparent procedures (public announcement), the possibility of participation of EFKA executives, the rest of the public and private sector and a special system additional rewards based on goals. In this way, the aim is to attract the best executives from the public or private sector, with the aim of making the Organization more efficient.
2. New governance model for EFKA with a new organizational chart, aiming to improve its operation at all levels of administration. A new procedure for the appointment of a governor and deputy governors is foreseen, with the election of the Minister of Labor and Social Affairs and a previous opinion of the Parliamentary Institutions and Transparency Committee. There will be a redesign of the responsibilities of the board of directors with the transfer of responsibilities of the Board to the governor, the deputy governors and the general managers, in order to avoid micromanagement. As mentioned above, a new organizational chart will be prepared -in collaboration with a specialized consultant- to deal with the malfunctions from the temporary merger of the funds in EFKA for the better monitoring of the regional services, etc.
3. Direct recruitment of permanent and temporary staff. In particular, recruitment procedures for 500 permanent employees within the first half of 2022 (mainly by runners-up of previous ASEP competitions) will begin immediately – in consultation with the Ministry of Interior. There will be prioritization of recruitments, according to targeted needs (IT specialists, Administrative-Financial PE). It is also planned to immediately hire 100 employees with project contracts to speed up the award of pensions.
4. Establishment of productivity premiums for employees. The premium will be linked to specific measurable targets (and weighting factors) to be set per directorate, depending on the subject and the institution’s priorities. The payment of the pension clearance bonus, which has already been introduced, is amended to make it more linked to the results of the rapporteurs’ work and more proportionate. There is also a payment of a bonus related to the results of their work to the employees who work in the back office of the call center.
5. Establishment of a new Internal Affairs Unit for immediate investigation of citizens’ complaints. A new Internal Affairs Unit is set up, headed by a former senior judge (eg Attorney General of the Supreme Court), in charge of the direct investigation of complaints and requests and the conduct of ex-officio checks (eg in case of excessive delays), in cooperation with the National Authority. . If the Unit’s finding results in disciplinary action, this will bind the disciplinary bodies. The aim is to reverse the current situation, as today hundreds of citizens’ complaints are not addressed and evaluated in a timely manner.
6. Faster and more efficient disciplinary process. Shorter deadlines are foreseen for the disciplinary proceedings, given that the proceedings in the Disciplinary Boards are usually “dragged on” for years and that at the present stage 115 audits are pending, of which 97 are still in the Primary Boards, with an average completion time of two. years. In particular, the disciplinary action will be taken in one month (instead of three months) and will be completed in one month from the call for an apology (instead of two months). In the context of strengthening the impartiality of audits, SADs will be carried out compulsorily by an official of another ministry. The Disciplinary Council will be composed of three members (judicial president, assistant NSK and a permanent employee outside the Ministry of Labor and Social Affairs), with the abolition of the participation of elected representatives of EFKA employees.
7. A more flexible procurement system, in order to put an end to phenomena such as the untimely supply of consumables, spare parts and the difficulty of replacing obsolete equipment (eg PCs, air conditioners, etc.). Among other things, an exception is introduced from the procedures of law 4412/2016 -within the limits set by the European directive- for simpler procedures of assignment of works and supplies and the obsolete and time-consuming approval procedures by the ministry for expenditures related to EFKA are abolished, such as for example the approval for the expediency of outsourcing computer services, maintenance work, etc.
8. Utilization of the real estate of e-EFKA, through the establishment of a Special Purpose Company. It is indicative that the body has 400 properties across the country, with a total objective value of over 1 billion euros and at least 20%, which concerns high value properties, remains completely unused. It is therefore foreseen the establishment of a Special Purpose Company for the utilization and management of the real estate, with separation of the properties for private use and for utilization. The company will be subject to a strict corporate governance framework with increased guarantees of transparency and accountability, but also the possibility of utilizing the good practices of the private sector for the management of its real estate portfolio “.
The Minister of Labor and Social Affairs, Kostis Hatzidakis, also recalled the main initiatives that have been taken in recent months to improve on the one hand the service of the citizens and on the other hand the working conditions of the employees.
These include:
– The Unified Citizen Service Number 1555
– The permanence of electronic appointments
– The supply of new computers for EFKA employees
– The introduction of bonuses for the speakers who issue the most pensions
– The introduction of the measure of certified lawyers and accountants, with the aim of speeding up the process of awarding pensions.
The need for intervention – What problems it faces
As Mr. Hatzidakis stressed, documenting the necessity of the new intervention, “EFKA, which is one of the largest public organizations in the country, affecting the daily lives of 6.5 million citizens (2.5 million retirees, 4 million employees and the self-employed) , is at the same time the most problematic body of the Greek public administration. He is first – and by far – in complaints and petitions to the Ombudsman (accounting for 48% of complaints about the wider public sector), with delays in awarding pensions being the “tip of the iceberg”. It presents huge organizational and administrative problems that have been greatly exacerbated by the unregulated merger of the former insurance funds in 2016, while its operation is burdened by time-consuming bureaucratic procedures, which in many cases create significant administrative costs for companies, with consequences for the economy.
In addition, EFKA has significant shortages of high-level and specialized staff (eg IT executives), while it does not have an effective system either to reward employees who are efficient, or to control those who do not do their job well. The operation of disciplinary controls is also particularly problematic. It is indicative that the examination of 1,127 complaints for poor service and / or excessive delay in the award of pensions is pending.
“Finally,” thorns “are the long delays in procurement, as well as the lack of utilization of the significant real estate of the institution, from which significant revenues could emerge, which would strengthen its resources”, according to the Minister of Labor.
The goals
Regarding the goals of the reform, Mr. Hatzidakis underlined that the aim is EFKA:
– to meet the needs but also the demands of citizens for a European level of service and rapid award of pensions,
– gain more flexibility and administrative autonomy for immediate decision-making,
– to be fairer, really rewarding good employees and stepping up control over those who do not do their job well,
better manage human resources, utilizing human resources from both the private sector, and
make more efficient use of its vast real estate for the benefit of policyholders and retirees.
The Minister of Labor and Social Affairs, Kostis Hatzidakis, stated: “EFKA is the biggest wound of the Greek State. The government can not remain indifferent to this situation. Repairs are not enough, firefighting solutions are not enough. We have already made a number of changes which have a positive effect on the rate of issuance of pensions, as this year we will exceed 200,000 decisions in relation to the main pensions, which is an all-time record, but it is not enough for us. We are interested in EFKA changing gears. To really become a social tool, a citizen-friendly organization. We utilize ideas and policies that have been implemented in other European countries or have progressed successfully in the private sector, but also in the public sector in our country, with the most typical example being PPC.
We respect the uniqueness of EFKA as a Legal Entity under Public Law, but that is no reason not to serve the citizens. EFKA must become an organization that meets the demands of Greek citizens. This is not going to be done with wishes. “Specific measures are required which establish incentives and sanctions for employees and at the same time promote sections of administrative modernization, to become a new EFKA, more efficient, more productive and, above all, more friendly to the insured”.
For his part, the Deputy Minister of Labor and Social Affairs, Panos Tsakloglou, noted: “The effort made to improve the services provided by EFKA is ongoing. The organization must meet the needs and requirements of citizens for a high level of service at all levels of operation. The bill, presented today to the cabinet, seeks to provide greater flexibility and administrative autonomy to the body and to introduce modern methods of governance. It is foreseen the provision of appropriate incentives to the staff and the executives, the rational organization of the institution, the renewal and the strengthening of its staff and the utilization of its real estate. Our goal is the unified insurance body of the country to become a modern public service that will consistently meet the ever-increasing demands of its role. “A lot has been done, but even more needs to be done.”
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