Speaker(s): Georgios Symeonidis (Hellenic Actuarial Authority)
Greece has one of the largest percentages of social security contributions for pensions, amounting to almost 24 percent for special groups of employees. At the same time, its pension system became unsustainable a few decades ago, without any government taking action to bring it back to financial stability.
A detailed proposal of three academics (Nektarios, Tinios, Symeonidis - NTS) suggested a way to reform the system through the introduction of a notional defined contribution first pillar, while at the same time reducing social security contributions by 50 percent. The second pillar is to become fully capitalized and an optional third pillar is proposed in order to support occupational funds (IORPs).
This work aims to analyze and present the basic points of this new system while at the same time elaborate on the actuarial indices that bring out the benefits of contribution reduction.