Supplementary Pension Insurance Scheme

Σύστημα Επικουρικής Κοινωνικής Ασφάλισης

Coverage

Mandatory insurance

All persons mandatorily insured in the statutory old age pension scheme (i.e. all persons employed in the public and private sector, self-employed persons, agricultural workers).

Voluntary insurance/opting out/opting in

There are no options for voluntary insurance or opting in/opting out of mandatory insurance in this scheme.

Financing

General finances

The scheme operates under a PAYG-financed notional defined contribution (NDC) system (since 2012, for persons first insured after 01/01/2014) based on insurance contributions and property investments of the supplementary public pension schemes.
Any kinds of transfers from the public budget are precluded; there are no guarantees by the state to cover for any deficits incurred by the scheme.

Contribution rates

Fixed share (6%) of monthly gross earnings.
Contributions shared in parity between employers (3%) and employees (3%).
Special contribution regulations for self-employed and agricultural workers (i.e. insurance contributions are calculated on the basis of the minimum basic salary of a single employee over the age of 25).

Administration

Benefits are provided by the Unified Auxiliary Social Security and Lump Sum Benefits Fund (ETEAEP).

Qualifying Conditions

Conditions equal those of the statutory public pension scheme.

Benefits

Pension benefits

Earnings-related, based on the amount of contributory earnings throughout working career.

Factors for benefit calculation

Notional defined contribution (NDC) system (since 2012):
The notional return that is applied to the contributions, with consideration also given to the sustainability factor, which guarantees the continuity of the system.
The sustainability factor depends on the average earnings of the insured as well as the number of insured persons and demographic changes. It concerns the clause of ‘null deficit’, which constitutes a self-correcting mechanism in the supplementary public pension funds. According to this clause, benefits shall be readjusted if expenditures exceed revenues.

Taxation and social security contributions

Benefits are subject to tax.

Coverage

Financing

Administration

Qualifying Conditions

Benefits

Mandatory insurance

All persons mandatorily insured in the statutory old age pension scheme (i.e. all persons employed in the public and private sector, self-employed persons, agricultural workers).

Voluntary insurance/opting out/opting in

There are no options for voluntary insurance or opting in/opting out of mandatory insurance in this scheme.

General finances

The scheme operates under a PAYG-financed notional defined contribution (NDC) system (since 2012, for persons first insured after 01/01/2014) based on insurance contributions and property investments of the supplementary public pension schemes.
Any kinds of transfers from the public budget are precluded; there are no guarantees by the state to cover for any deficits incurred by the scheme.

Contribution rates

Fixed share (6%) of monthly gross earnings.
Contributions shared in parity between employers (3%) and employees (3%).
Special contribution regulations for self-employed and agricultural workers (i.e. insurance contributions are calculated on the basis of the minimum basic salary of a single employee over the age of 25).

Benefits are provided by the Unified Auxiliary Social Security and Lump Sum Benefits Fund (ETEAEP).

Conditions equal those of the statutory public pension scheme.

Pension benefits

Earnings-related, based on the amount of contributory earnings throughout working career.

Factors for benefit calculation

Notional defined contribution (NDC) system (since 2012):
The notional return that is applied to the contributions, with consideration also given to the sustainability factor, which guarantees the continuity of the system.
The sustainability factor depends on the average earnings of the insured as well as the number of insured persons and demographic changes. It concerns the clause of ‘null deficit’, which constitutes a self-correcting mechanism in the supplementary public pension funds. According to this clause, benefits shall be readjusted if expenditures exceed revenues.

Taxation and social security contributions

Benefits are subject to tax.

Legal Basis: Law 4052 of 2012, Law of Competency of the Ministries of Health and Social Solidarity and Labour and Social Security for the application of the Law ‘Approval of the Draft Financial Assistance Facility Agreement between the European Financial Stability Facility (EFSF), the Hellenic Republic and the Bank of Greece on the Memorandum of Understanding between the Hellenic Republic, the European Commission and the Bank of Greece’ and other provisions on the reduction of public debt and the rescue of the Greek economy (‘Νόμος αρμοδιότητας Υπουργείων Υγείας και Κοινωνικής Αλληλεγγύης και Εργασίας και Κοινωνικής Ασφάλισης για εφαρμογή του νόμου «Εγκριση των Σχεδίων Συμβάσεων Χρηματοδοτικής Διευκόλυνσης μεταξύ του Ευρωπαϊκού Ταμείου Χρηματοπιστωτικής Σταθερότητας (Ε.Τ.Χ.Σ.), της Ελληνικής Δημοκρατίας και της Τράπεζας της Ελλάδος, του Σχεδίου του Μνημονίου Συνεννόησης μεταξύ της Ελληνικής Δημοκρατίας, της Ευρωπαϊκής Επιτροπής και της Τράπεζας της Ελλάδος και άλλες επείγουσες διατάξεις για τη μείωση του δημοσίου χρέους και τη διάσωση της εθνικής οικονομίας’ και άλλες διατάξεις); Law 4387 of 2016, Unified System of Social Insurance, providing for the reform of the social protection system and pension scheme and regulating the tax income and taxation for games of chance and inserting other provisions (Μεταρρύθμιση ασφαλιστικού συνταξιοδοτικού συστήματος); Law 4670/2020, Social Insurance Reform and Digital Reconstruction of the National Social Insurance System (e-EFKA) (Ασφαλιστική μεταρρύθμιση και ψηφιακός μετασχηματισμός Εθνικού Φορέα Κοινωνικής Ασφάλισης (e-ΕΦΚΑ)).