By Vangelis Dourakis

The first 500 were issued pensions insured persons with debts of up to 30,000 euros. The relevant procedure of n. 5078 was “unblocked” – even with a delay – and now there are still 2,000 debtors waiting to receive their pension, with the submission of applications continuing. All that was left for the relevant process to “go forward” was the activation of a special software that allows the control of the debtors’ bank accounts.

The specific software, which “connects” with the banking institutions and enables the relevant necessary control of those who submit pension applications, was delivered to EFKA at the end of September. Thus, it became possible from mid-October to start issuing pensions for professionals with debts to the Insurance Funds of up to 30,000 euros and up to 10,000 euros for farmers.

What EFKA checks when submitting the application

The prerequisite was therefore fulfilled and the “green light” was given for the submission of applications by debtors who have the conditions to receive a pension. The relevant regulation was passed last December with Law 5078/2023.

In order for pensions to start coming out to those who have debts, it is not enough only to submit an application for retirement, but also an application to be included in the regulation of their debt by offsetting the amount of the pension.

The pension application will be able to be submitted on the electronic platform of the EFKA: From there on, an automatic check will be made on the debtors’ details and especially on their bank deposits in order to avoid issuing pensions to rich debtors.

The deposit limit that allows pensions to be issued to insured persons with debt is deposits of up to 12,000 euros for those who owe up to 30,000 euros to EFKA and deposits of up to 6,000 euros for those who owe up to 10,000 euros to OGA.

If the debts are over 30,000 euros or over 10,000 euros for the OGA, then the insured will be asked to pay the excess amount within two months, otherwise the application will be rejected.

Subtitle: Conditions for issuing a pension

To receive a pension, debtors must meet the following conditions:

– Completed at age 67 with at least 20 years of paid contributions.

– Completed the age of 62 with a total insurance time of 40 years of which contributions for 20 years must have been paid.

– Deposit limit up to 12,000 euros on average in the last 12 months before the application, for those who owe EFKA up to 30,000 euros.

– Deposit limit up to 6,000 euros on average in the last 12 months before the application, for those who owe the OGA up to 10,000 euros.

By applying for regulation, the insured gives his consent to the financial institutions and the Independent Public Revenue Authority for notification to EFKA of the documents and data required for the implementation of the regulation. Especially for the banks, the application for affiliation entails the removal of the confidentiality of deposits.

Subtitle: What amounts will be withheld from the pension – Examples

Those who get approval will receive 40% of the pension and the remaining 60% will be withheld until the debt for the EFKA is limited to 20,000 euros, and for the OGA to 6,000 euros.

From these limits and below, pensioners – debtors receive the remaining 60% of the pension and from this they will be withheld every month an amount of 333.33 euros for EFKA debts and 100 euros for OGA debts for 60 months that the debts will be zeroed out and the withholding will stop.

Examples

– A self-employed person who is entitled to a pension of 900 euros and owes 25,000 euros, will receive 40% of the pension, i.e. 360 euros, and the remaining 60%, i.e. 540 euros, will be withheld to offset a debt of 5,000 euros so that the debt is reduced to 20,000 euros. After the settlement, he will receive the entire pension (900 euros) and the remaining 20,000 euros will be paid with a monthly withholding of 333.33 euros from the pension for 60 months. During this period the pensioner will receive 567 euros, and when the debt is zero he will receive 900 euros.

– A self-employed person who is entitled to a pension of 500 euros and owes 23,000 euros receives 40% of the pension, i.e. 200 euros. The withholding of the remaining 60% of the pension is 300 euros and falls short of the 333 euros set by the decision as the minimum withholding amount. Therefore, the retired debtor will have the withholding of 333 euros and the pension he will receive until the debt of 3,000 euros is settled will be 167 euros.

He will stay with this amount until the remaining 20,000 euros of his debt are offset with 60 installments from the pension. When the debt is zero, he will get the 500 euros.