Greece’s draft legislation on Professional Pension Funds (TEA) is set to enter public consultation by the end of July, according to Labour and Social Security Minister Nikē Kerameōs. She presented the bill to the Cabinet earlier today (30 June 2024) and later held a press briefing.
Key Reforms and Incentives
The proposed reform framework introduces tax incentives aimed at encouraging broader participation by both employees and employers in the TEA system. Among the key measures announced by Minister Kerameōs is the abolition of the existing tax penalty — a significant disincentive — alongside the introduction of an exemption from social security contribution taxation for contributions made to TEAs.
The bill also promotes a new collective occupational pension product, which will be integrated into Pillar 2 of Greece’s three-pillar pension system.
Portability and Broader Benefits
Kerameōs emphasized that the reforms establish full portability across the labour market, ensuring that accrued pension rights remain with workers even when changing jobs. She cited concrete examples illustrating how both insured individuals and businesses stand to benefit from the proposed changes.
Next Steps and Objectives
The draft law is expected to move toward parliamentary approval this autumn, following the public consultation period. The Ministry aims to foster an open dialogue with stakeholders during the consultation phase, with the goal of refining the incentive structure. Ultimately, the initiative seeks to strengthen Greece’s professional pension fund system, foster a culture of occupational pension savings, and expand complementary pension pillars in the country.