December 3, 2022

Lump-sum benefit

The lump-sum benefit was instituted to mitigate the consequences of the abrupt transition from active working life to retirement and is an extension of employees’ pension protection in order to make up for part of their lost income.

Subscription to insurance is required and all the 35 institutions that were integrated in the Lump-Sum Benefits Sector of e-EFKA and the legal persons governed by public law by conversion of Law 3029/2002  cover all the employees of the public sector (civil servants, legal persons governed by public law, etc.), the employees of utility companies (PPC, OSE, OTE) and a small percentage of the employees of the private sector (hotel employees, tradespeople, employees of cement companies, fertilizer companies, etc.) and the self-employed (health workers, lawyers, engineers, etc.).

 

Conditions of payment

The lump-sum benefit is granted by the Lump-Sum Benefits Branch of e-EFKA, if the person insured received a main pension due to old age or permanent disability.

The respective provisions of Article 35(3)(b) and (3)(c) of Law 4387/2016 as in force (Article 35 of Law 4387/2016 as replaced by Article 31 of Law 4670/2020) apply to persons who become beneficiaries of the lump sum benefit of a deceased insured.

 

Method of calculation

The lump-sum benefit consists of the sum of two parts:

a) the part corresponding to the insurance years until 31 December 2013

b) the part corresponding to the insurance years from 1 January 2014 onwards which is calculated based on the NDC system (Article 35 of Law 4387/2016 as replaced by Article 31 of Law 4670/2020).

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