A NEW FORMULA FOR OVERDUE CONTRIBUTIONS TO THE SOCIAL SECURITY FUND IS INTRODUCED - INSTALMENTS ARE INCREASED TO 54 AND CHARGES ARE WRITTEN OFF - Filenews 1/4 by Eleftheria Paizanou
The Government and parliamentary parties have found a way to regulate the overdue contributions to the Social Insurance Fund (TCA), so that a new repayment plan by debtors can be implemented within the month, as the debts have climbed to €245 million.
Where the parties were preparing to drastically change the bill, which provided for the implementation of a new plan for overdue contributions, through which debts would be paid in 48 instalments and without writing off the charges, during yesterday's session of the Parliamentary Labour Committee they reached a compromise formula with the Minister of Labour.
Marinos Mousiouttas rushed yesterday to the Parliamentary Labour Committee, in order to prevent possibly unconstitutional regulations that would result from increasing the number of instalments beyond 100, which would immobilize the plan. Specifically, DIKO, ELAM and Ecologists had proposed that the number of instalments for overdue debts be increased to 120, while DIPA suggested that they be increased to 100, when the debts exceed €30,000.
Compromise formula
The Minister of Labour counter-proposed that the number of instalments for overdue contributions be increased from the 48, provided for in the bill, to 54 and, at the same time, that the charges be deleted. Essentially, the provisions of the two previous plans, which had operated during the period of the economic crisis and the coronavirus pandemic, will be implemented.
According to the Minister of Labour, this formula covers the positions of the parties and does not cause budgetary costs, nor time-consuming procedures. As Mr. Mousiouttas explained, with the write-off of the charges and the increase of the instalments to 54, if someone owes €100 and has charges of €30, if he pays his debts in 27 instalments, then he will save 27/54 of the charge and will pay €15.
In fact, he said that in the previous plan there was a debtor who paid off his overdue debts by paying only two instalments, which resulted in him being spared the charges. However, the minister was clear to the MPs, informing them that any proposal other than the compromise will be judged as unconstitutional and the law will be referred back to Parliament.
The benefits
Specifically, debtors who will be included in the new plan will benefit from the following, according to the new formula:
– For debts that are under settlement, the additional fee imposed is not increased for periods of delay.
– No criminal prosecution is initiated against debtors throughout the period of their inclusion in the arrangement.
– Criminal prosecutions against debtors will be suspended for the entire period during which they are included in the settlement.
– In the case of debtors whose debts have been adjudicated and a decree for the execution of a warrant by the Court is pending, this is suspended throughout the period of their inclusion in the settlement.
– If a debtor offers services to the state for a fee, in case of debt offsetting, the competent state services will cut off 30% for debt repayment and 70% will be granted to him.
It is worth noting that all 395 debtors participating in the last plan, which expires in September, will be able to join the new plan.
Applications for four months
Immediately after the approval of the bill, the Social Insurance Services will post electronic applications for participation in the plan. Those interested will have four months to submit their applications, which will be evaluated immediately, so that the implementation of the new plan can begin.
As the minister explained, the implementation of the plan will be immediate, as the computerized system is ready. According to the minister, in case of radical amendments by the parties, it will take 10 months to complete the changes in the computer system. The bill will be brought to the Plenary Session of the Parliament next Monday.
Receipts of €100 million.
As for the two previous plans, the state collected around €100 million from them. From total debts to the Social Security Fund amounting to €225 million.
Specifically, 6,500 debtors were included in the 2016 plan for debts of €125 million. Along the way, 51% of the participants left the plan, as they violated its provisions. An amount of €58 million ended up in the state coffers.
In the second plan, implemented in 2022, 4,400 debtors were initially included to settle debts of €104 million. Subsequently, 62% of the debtors, i.e. 2,900 persons, were removed from the plan. The state had collected an amount of €40 million. It should be noted that 395 debtors are included in the latest plan.
In the context of the discussion in the Committee, it was said that, in the event that someone is imprisoned for debts to the state, these are not written off but transferred to his heirs.
