Friday, April 19, 2024

DISY-DIKO ALLIANCE FOR VOLUNTARY RESIGNATION OF OFFICIALS FROM PENSIONS

 Filenews 19 April 2024 - by Eleftheria Paizanou



At a time when the Finance Ministry's consultations with the parties on the issue of multiple pensions are leading to an impasse, as the government proposals do not fully satisfy the party leaderships, DISY and DIKO allied to vote for a regulation that, in their estimation, solves the problem quickly and simply.

Indeed, the rapporteurs' aim is for the proposal to be adopted before the European and local government elections on 9 June, so as not to create more multi-pensioners among the winners of the elections.

Specifically, a proposal for a law prepared by DIKO and co-signed by DISY was submitted yesterday to the Plenary of the Parliament. The proposal introduces new legislation allowing an official appointed or elected to a public office, function or position to submit to the competent minister a declaration of renunciation of a state pension for the period during which he will serve in that office.

In addition, if the draft law is approved, the state pension that will be renounced will be given to the Fund of the Independent Social Support Body. It is worth noting that the regulation included a provision that, in case the official refuses to sign the waiver or if he revokes it, the Parliament will be informed.

The two parties form a majority in Parliament and it is possible for the bill to be approved by their MPs. However, lawyers speaking to "F" believe that there may be legal pitfalls.

Additional clarifications

As lawyers told us, the draft law is not fully clear, since, for those state officials who do not agree to renounce the pension or pensions, the Minister of Finance will simply inform Parliament. This is because it will not be compulsory to renounce the pension but potential.
Perhaps both parties believe that with the name and shame that is likely to be made by the disclosure of the names of such officials, there will be acceptance of the renunciation by all.

The position of the Legal Service

This issue was raised during the first meeting of representatives of the parties with the Minister of Finance. The position of the Legal Service is that 'an answer to this question has been given in an opinion of the Legal Service, dated 16 August 1999, which states that in the absence of legislative provision, it is not possible to waive the right to a pension or pension while receiving a salary from another office'.
However, the Legal Service also notes that even without legislation on pension renunciation, an official is not prevented from voluntarily paying the amount of the pension(s) received to the Fixed Fund of the Republic.

Lightning counterattack

Yesterday, Finance Minister Makis Keravnos went on the offensive, defending the government's bills on multiple pensions, through which the State will have savings. As he argued, it is anecdotal to say that multiple pensions will be replaced by multiple lump sums, stressing that if the actuary were allowed to present his study from the first meeting held between the ministry and the parties, it would be clear that there is no question of multiple tips.

According to him, the actuarial study given to the parties showed that the implementation of government bills results in significant savings.