There will be no new pension cuts, Katrougalos says

Speaking in public broadcaster ERT, Katrougalos said there would be no new cuts in pensions and noted that pensioners will be informed in a letter for pension cuts already made, explaining the rationale of the new system of re-calculating pensions.

The minister said that main pensions were not reduced, while supplementary pensions were cut only when total pension payment surpassed 1,300 euros. Katrougalos said that supplementary pensions were cut up to 40 pct in some cases in order to achieve a balanced contribution-benefit rate. He added that there will be a limit of 10 pct on retrospective pension cuts.

He said that the ministry was seeking an agreement with creditors on freezing arrears to pension funds and to reach some kind of an arrangement to repay these debts. Katrougalos said all three prior-actions related with the ministry have been agreed with creditors, including an integration of healthcare contribution from January 2017 and reiterated that the government has set red lines in negotiations over group dismissals, collective bargaining and lock out. He noted that the state will stand by the side of any potential unemployed workers in TV stations that failed to obtain a TV license.

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