IKA to ask for help to pay pensions

The administration of the Social Security Foundation (IKA) is on Thursday expected to seek approval for additional funding from the Social Security Capital for the Solidarity of Generations (AKAGE) reserves to cover part of its constantly growing deficit.

Despite the positive course of its revenues, the deficit of the country’s biggest social security fund, which is likely to form the backbone of the planned National Social Security Entity (EFKA), is expected to reach 2.1 billion euros.

To cover that deficit and pay monthly pensions in time, IKA’s management only has limited options. These are halting payments to third parties for which it collects revenues, such as the EOPYY healthcare service organization, additional financing from the state budget, and recourse to AKAGE. It appears that IKA will use all three of those instruments to make sure that pensions are paid out without any problems in the last few months of the year.

Social security experts say that another available tool is further postponing the times when definitive decisions are issued on the pensions of the 140,000 retirees waiting up to three years to finally get their pensions.