June 28, 2022

Supplementary pension

The supplementary pension is complementary to the main pension. Its purpose is to increase the income of the person insured when the insurance risk of old age, disability or death occurs (for the surviving spouses and their children).

It is provided by the Supplementary Insurance Branch of e-EFKA.

The MTPY grants a dividend (Article 2 of PD 422/1981) in proportion to the amount of the shareholder’s deposits

 

Retirement conditions

The persons insured at the Supplementary Insurance Branch of e-EFKA are entitled to a supplementary pension, provided that they establish a corresponding pension entitlement in their main insurance institution for the same reason and have fulfilled the required conditions provided for by law for their respective primary insurance institution, as well as general law, as in force (Article 41 of Law 4052/2012).

The minimum insurance period required to establish a pension entitlement is 15 years or 4 500 insurance days.

For the MTPY, a necessary condition for the payment of a dividend is for the shareholder to have already been entitled to pension from the State or by the former primary insurance company.

The general condition for obtaining a dividend from the MTPY is that the shareholder should have been a member of the Fund for 20 years, pursuant to Article 40 of PD 422/1981 as amended and in force (www.mtpy.gr).

 

Method of calculation

a) For the persons insured for the first time as of 1 January 2013, the notional defined contributions (NDC) system is applied and the pension is calculated (Article 42 of Law 4052/2012 as amended, and replaced by Article 96 of Law 4387/2016, as replaced since its entry into force with Article 44 of Law 4670/2020 and Ministerial Decision No 17537/989/06.05.2020) by applying the appropriate annuity on the total contributions that have been collected in the individual account of each person insured. The applicable annuity depends on the category of pension (old age, disability, death) and the age of the beneficiary.

b) For persons insured before 1 January 2013, a mixed calculation system for the benefit is applied (Article 42 of Law 4052/2012 as amended, and replaced by Article 96 of Law 4387/2016 as replaced since its entry into force with Article 44 of Law 4670/2020 , Ministerial Decision No 17537/989/06.05.2020), which consists of two parts:

  • The first part concerns the insurance period until 31 December 2014 and results from the following formula: years of insurance x 0.45% x pensionable earnings.
  • The second part concerns the insurance period from 1 January 2015 onwards, and the notional defined contributions (NDC) system applies to it, as in the case of persons insured after 1 January 2013.

c) For the MTPY, the monthly dividend of its shareholders, pursuant to Article 49 of PD 422/1981 as in force (mtpy.gr) is considered equal to the sum (Μ = Μ.a + Μ.b) and is analysed as follows:

  • the basic salary at the time of participation in the insurance of MTPY, reduced to years, multiplied by the annual substitution rate (S),
  • the other earnings at the time of participation in the MTPY insurance on which a deduction of 4.5% made on each kind of these earnings and the planned deduction was attributed to MTPY, in favor of MTPY, reduced to years, multiplied by the annual substitution rate (S). For 2016 the annual substitution rate (S) is equal to 0.215%.

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