Summary:
Statutory social security schemes (first pillar), as pay-as-you-go (PAYG) schemes, in case of ageing population and economic depression, present problems related to pension funding, thus creating the urgent need for counterbalance, which is provided by the Directive IORP II through the strengthening of occupational schemes (second pillar), as funded schemes. More precisely, according to the Directive, the occupational schemes obtain the status of institutional complement in relation to the statutory social security schemes. This way of combination of the different schemes is rational and optimal, as it benefits from the advantages of both of them, since the statutory social security schemes, apart from their problems, have also the advantage of the direct awarding of pensions, in contrast to occupational schemes that require long waiting periods for capital formation and awarding of pensions. The improvement of the second pillar in the above-mentioned way, as attempted by the Directive in a series of provisions, is in the interest of all: namely, 1) in the interest of institutions for occupational retirement provision (IORP) themselves, through the cross-border transfer of pension schemes, and so, the easier consolidation of existing pension schemes, 2) in the interest of national economies of the Member States, because of the reduced fiscal pressure on Member States' PAYG public pension systems, 3) in the interest of EU economy, given the very large scale of some IORP, 4) in the interest of sponsoring undertakings - employers (including medium-sized undertakings), because of the reduced cost of joining an existing occupational pension fund but also of the reduced administration and investment costs, 5) and in the interest of employees, given the better information on their IORP pension rights.
The greek law 4680/2020 transpose the Directive IORP II into the national legislation. This law has some particular problems, which mostly concern the uncritically faithful translation of the Directive, such as the problem of interpretation of some of its points. Also, the previous greek status of occupational pension schemes, as created and established until today on the basis of the previous law 3029/2002, and the new greek status of occupational pension schemes, as it results from the new law 4680/2020, don’t constitute a "continuum" in relation to each other, and this is reflected on the implement of the new law, which therefore becomes difficult, delaying the completion of the three - pillar system pension in Greece. In the meanwhile, ministerial decisions, that will specify the new law, are still pending, and that delays too the completion of the three - pillar system pension. Nevertheless, the problems of the law in question don’t negate its value, as it makes a decisive contribution to the improvement of the second pillar (serving diverse interests as the above – mentioned), given that its good effects will surely appear, even if they are not so immediate but long term.
Keywords:
statutory social security schemes, pay-as-you-go (PAYG) schemes, first pillar, occupational schemes, funded schemes, second pillar, pension schemes, greek law 4680/2020, greek law 3029/2002, Directive IORP II, Directive IORP, Directive (EU) 2016/2341, Directive 2003/41/EC
