“From today, all our fellow citizens who have debts of up to 30,000 euros to the e-EFKA will be able to retire,” said the Minister of Labor and Social Security, Domna Michailidou, on the occasion of the publication in the Government Gazette of the Joint Ministerial Decision (KYA ): “Retirement with debts up to 30,000 euros from the e-EFKA – Cross-checking procedures, checks, conditions and technical details for the implementation of article 115 of Law 5078/2023”.

“With this arrangement, with which we increased by 50% the ceiling for debts to e-EFKA, from 20,000 euros to 30,000 euros, we are putting our commitments into practice,” said Ms. Michaelidou. As he noted, “with the new arrangement, we enable freelancers to receive a pension with debts of up to 30,000 euros or 10,000 euros if they are a farmer, stipulating that for the extra amount the withholding will be 60% of the pension and, in then, the possibility will be given for 60 installments, as is the case today. The State does not want citizens who have debts, but citizens who can service their debts and receive their pension”.

As stated in a related announcement, before this regulation, self-employed people who owed more than 20,000 euros or farmers who owed more than 6,000 euros to the e-EFKA, had to pay the excess amount in one lump sum in order to receive the pension two months.

What are the conditions for being subject to the regulation?

To be included in the arrangement, the insured must cumulatively meet the following conditions:

a) the debts to e-EFKA do not exceed 30,000 euros or to the OGA no more than 10,000 euros,

b) to have reached the age of 67 or, if he has an insurance period of at least 40 years, the age of 62,

c) to have paid the contributions corresponding to an insurance period of at least 20 years or 6,000 days of insurance regardless of the former institution awarding the pension and

d) his bank deposits do not exceed 12,000 euros or the amount of 6,000 euros, if he is a debtor exclusively to Fr. OGA.

What should debtors do?

The affiliation application is submitted together with the retirement application.

After the submission of the affiliation application, e-EFKA checks whether the debts of the insured exceed the limits that have been set. In the event that the debts do not exceed this amount, the pension deed is issued and the pension is paid.

In the event that the controls show that the conditions for being included in the regulation are met, then:

a) If the total amount of debts exceeds 20,000 euros, but not 30,000 euros or 6,000 euros, but not 10,000 euros for the former OGA, then the application is accepted and e-EFKA proceeds to issue the pension act.

b) If the total amount of debts exceeds 30,000 euros or 10,000 euros for the OGA, then a debt document is notified, in order for the insured to pay the excess of 30,000 euros or 10,000 euros for the OGA within two months of notification of and to be subject to regulation.

As long as the conditions are met, e-EFKA proceeds with the issuance of the pension act and the payment of the pension.

In particular, the excess of 20,000 euros or 6,000 euros for the aforementioned OGA amount of debt is offset with 60% of the monthly amount of pensions paid, until it is zero.

The monthly netted excess amount cannot be less than 333.33 euros in general and 100 euros for the P. OGA.

Otherwise, the withholding rate is adjusted accordingly.

After the excess amount is set to zero, paragraphs 1, 2 and 3 of article 61 of Law 3863/2010 apply to the remaining debt.

What is provided for pending applications?

Retirement applications that have been submitted before the entry into force of Law 5078/2023 and are pending at any stage of the administrative process, can be subject to the regulations, after the request of the insured.

Retirement applications that have been submitted after the entry into force of Law 5078/2023 and are pending at any stage of the administrative process can also be subject to the regulations.

In the event that the retirement application has already been rejected, due to debts, it is necessary to resubmit it in order to be subject to the regulations herein.