Greeks to fall under just three social security funds

It’s no secret that Social Security in Greece in serious trouble. Steadily aging population, coupled with recession stricken employers contributions and the imposed Troika bond haircut has brought almost all Social Security Funds to their knees. A reform is desperately needed and the government appears to be hatching a plan to deal with the issue.

According to the newspaper, the plan places all 7 million insured citizens into just three Social Security Funds, responsible for all pensions and gratuity. The three funds will be formed after the consolidation of the existing 60 Funds today.

There will be a Fund for all employees, another for freelancers and a third for farmers. For the system to work, the government is considering an electronic ID to substitute insurance stamps and health certificates of millions of citizens.

According to the report, the government plans to have the project up and running by the end of the year. A special committee with members from the employers and employees unions, which will be responsible for the logistics of the project, will be formed.

It’s an ambitious plan for a major reform, by a government already facing social unrest. However urgent such a reform is before the Funds go totally bankrupt, it is unclear whether the coalition government will be able to withstand the reactions from all workers’ unions, expected to be loud and nonstop.