Greek pension reforms are set to include the introduction of a basic pension set at the poverty threshold of €432 a month, according to Labor Minister Giorgos Katrougalos.

The basic tax funded pension will also be supplemented by a contributory pension, Greek news source Tovima reported.

Speaking at a meeting with PAME delegates on 5 August, Katrougalos said the new reform will be based on actuarial studies that are to be conducted in the near future.

Katrougalos told delegates that after talks with institutions, a pension system would be set up, which would provide a basic pension via taxation. He emphasised it would not be below the poverty threshold, which has been estimated at €432 a month.

This basic pension would also be supplemented by a contributory pension, funded exclusively any pensioner contributions.

The proposed changes will be agreed this Autumn and are likely to come into effect at the beginning of next year.

Greece and its creditors have already agreed the pension reforms will only affect those who retired after the end of June.

The reforms are being implemented after creditors agreed to save Greece from bankruptcy by offering a bailout on the basis the struggling EU country implements a series of strict reforms to its financial system - notably to pensions.

Many negotiations between the International Monetary Fund, European Commission, ECB and European Support Mechanism are still under way. However, creditors have been actively demanding Greece increase the retirement age to 67 from the nominal 62 that will fall depending upon the number of years worked and family status.

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