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New Auxiliary Pension Cuts Mandated

New auxiliary pension cuts are being applied to Greeks social security funds this summer, due to the "zero deficit clause", between the Hellenic government and its global lenders.

The clause is being applied to save approximately 464 million euros. An additional 115.5 million euros will be saved, regarding the insured resource reduction returns, by the finalization of the Medium-Term Program of Fiscal Strategy for 2014-2018.

The majority of the 580 million euros that will be retained, will originate from auxiliary pension cutbacks. The initial reductions will occur July 1st, and will affect Single Auxiliary Social Security Fund recipients. Alterations will also incur to main pensions.

Beginning in 2015, the reduced revenues will counterbalance resources lost by 2018. Monetary figures are approximated at 974 million euros. The newly amended bailout agreement requests a merging of funds draft plan, by June's end.