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Pension funds subjected to haircut will receive €166m

The government has announced plans to give €166 million for the gradual compensation of those retiring whose pension funds had suffered in the 2013 haircut, so that the damage they sustained decreases from 50% down to 25%.

Finance Minister Harris Georgiades announced the plan, approved by the Cabinet, to compensate those whose pension funds sustained damage in the 2013 haircut. He added that the 2018 budget provides for €7.5 million to be given to those who have retired or are currently retiring and will draw from their pension funds.

Speaking to journalists following the meeting of the Cabinet, Georgiades said that €302 million had already been given as compensation in 2013/2014 to pension funds that had sustained damage.

“With this second, additional compensation, the political goal of limiting the damage to each member of the pension fund to 25% is achieved. The upper limit is, of course, €100,000 per member  so that the members of pension funds are not in a better position from the depositors,” he said.

More details of the plan will be announced in the following days, said Georgiades.

Applications will begin to be accepted in the fall, and upon approval of the next budget, payments to the retirees to be compensated will begin.

“I believe it is an important social policy which will cover tens of thousands of our fellow citizens, substantially limiting the damage they suffered in the haircut,” Georgiades added.


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