The government is preparing to propose a lump sum payment system to replace multiple pensions for state officials and MPs, as discussions continue over pension reform amid constitutional constraints.
Finance Minister Makis Keravnos is expected to present a revised proposal that would abolish pensions for state positions in favour of an increased one-time payment upon completion of service.
Party leaders agreed last week to consolidate 12 separate legislative proposals into a single bill, targeting a February parliament vote.
The proposed reforms aim to implement a single pension system and raise the retirement age from 60 to 65.
However, legal opinions suggest changes cannot be applied retrospectively to current officials due to constitutional protections, limiting reforms to future appointments.
“The government’s proposal represents the only legally viable solution to this issue”, Keravnos had told philenews, adding that an earlier voluntary pension waiver scheme had been abandoned due to constitutional concerns.
The finance ministry continues discussions with coalition parties regarding the new legislation, as parliament missed its initial target to implement changes before recent local government elections.
