Proposed Changes To Occupational Pension Funds

Greece considers ambitious reforms to shore up employee retirement savings with changes to tax treatments and access to multiemployer occupational pension funds.

Employer Action Code: Monitor

The government has proposed reforms to increase the use of voluntary insured occupational pension funds (OPFs) for providing supplemental retirement benefits. The reforms would, among other things, change the tax treatment to encourage the payment of OPF benefits as a pension rather than a lump sum, converge the taxation of OPFs with that of group pension insurance contracts, allow unrelated employers in different sectors to participate in multiemployer OPFs, and streamline regulatory supervision of OPFs as well as the process for establishing them. First established in 2002, 28 single-employer or sectoral multiemployer OPFs are currently in operation, with around 50,000 members and approximately 300 million euros in assets (government data), so an average member account