By Kostas Katikos
A mixed insurance model comes for young workers aged 22-35, as structural changes are underway in the distribution characteristics of the current system and an increase in the share of the capitalisation funds such as the TEKA and the Occupational Funds will occupy in future pensions.
The pensions received by workers up to 35 years of age will be based on the distribution system only in terms of the amount of the main pension and supplementary benefits will be determined by the long-term savings and reimbursement of their contributions to individual insurance accounts.
Already, the new model has been operating since 2023 in subsidiary insurance with the operation of the Capital Insurance Fund (TEKA) in which young people are required to be insured with an age limit until the 35th year. In contrast to the old supplementary funds of the EKCA (EIF) operating under the distribution system, the TEKA establishes the individual pension based on savings and return of contributions paid to individual employee insurance accounts. Both Funds (TIFs and TEKA) operate within the first public insurance pillar, but the big difference is that the insured persons in the TIF pay the pensions of the current pensioners with their contributions, while in TEKA each insured person pays the contributions only for his own pension in a fund operating with capital characteristics.
From TCA 20% of the pension
In practice, older insured persons will have 100% main and ancillary pensions calculated by the distribution system, while young people up to 35 years old will only receive from the distribution system the main pension, while the auxiliary will be given with the capital model, i.e. on the basis of the long-term savings and reimbursement of contributions accumulated in their individual pension bank.
Today's pensioners receive 100% of their benefits from the distribution system with the average main old-age pension according to the EDDIA at 980 euros and the auxiliary at 200 euros. However, young people will de facto have 20% of their benefits from the capital system by means of an auxiliary pension and 80% which is the main pension will come from the distribution system,
Pension from Occupational Funds
However, because the share of the main pension is expected to fall in the coming years and fall below 80% as the actuarial studies show the difference come to cover the Occupational Funds belonging to the second insurance pillar and operate with fully capitalised features.
In the Occupational Insurance Funds, according to the incentives provided for in the relevant Labour Ministry bill, employees over 55 years of age may also be insured, but it is clear that their entry into insurance is mainly about the insurance of young workers for supplementary benefits.
The main change in relation to the current status of the Occupational Funds is that the new Occupational Insurance Funds (TIFs) will be open to all insured persons, including freelancers, and without age restrictions.
The amount of the benefit will depend on contributions, insurance periods, the Fund programme and return on investments. For example, an insured person who starts at 28 to pay contributions with a duration of 37 years and an average monthly contribution of EUR 450 may receive an additional pension of EUR 600-700.
An important incentive is given to taxation of benefits, which is now linked to the retirement age rather than to the years of insurance. A tax of 10% on one-off and 5% on pension is provided for out of 62 to 67 years, while after 67 years the rates are reduced to 5% and 2.5% respectively.
However, if there is a departure before the established retirement age (e.g. before 62) then payment of benefits will be taxed as income on the tax scale concerned.
Εξίσου σημαντικό κίνητρο ασφάλισης των νέων εργαζομένων στα Επαγγελματικά Ταμεία είναι ότι οι ασφαλιστικές εισφορές που θα καταβάλλουν θα εκπίπτουν στο 100% από το φόρο τόσο για τους εργαζόμενους όσο και για τους εργοδότες. Οι εισφορές θα μπορούν να φθάνουν έως 35.000 ευρώ ετησίως για τους ελεύθερους επαγγελματίες και έως το 35% του ετήσιου εισοδήματος για τους μισθωτούς. Για ασφαλισμένους άνω των 55 ετών τα αντίστοιχα όρια διαμορφώνονται στις 20.000 ευρώ ή στο 20% του εισοδήματος.
Ώθηση στα νέα ταμεία θα δώσει η πρόβλεψη του νομοσχεδίου για τη δημιουργία Ομαδικών Ασφαλιστικών Προϊόντων Επαγγελματικής Συνταξιοδότησης (ΟΑΠΕΣ) από ασφαλιστικές εταιρείες καθώς και η μεταφορά των αποταμιεύσεων και των κατοχυρωμένων συνταξιοδοτικών παροχών των ασφαλισμένων από ένα Ταμείο σε άλλο ή σε Ομαδικό Ασφαλιστικό Πρόγραμμα.
