Private Employee Benefits GREECE 2014
Your Local Link to IGP in Greece: The ETHNIKI The ETHNIKI Hellenic General Insurance Company, founded in 1891, is the largest insurance company in Greece with 23% on Life Business, 12% on non-life Business and approximately 30 % of the group life and health market. ETHNIKI complies with the Sarbanes-Oxley Act..The ETHNIKI was also the first insurer in Greece to offer a Deposit Administration pension fund contract. The ETHNIKI s head office is located in Athens with 12 branches throughout the country, and it employs an experienced and knowledgeable staff of 800 people and over 2,900 field agents. The shareholder of The ETHNIKI is the National Bank of Greece, one of the largest banks in the country and a major international financial institution. The ETHNIKI has total assets of EUR 3.1 billion (USD 4.06 billion) and an annual premium volume of EUR 600 million (USD 822 million). Premium volume for group business is EUR 60 million (USD 82 million). The ETHNIKI retains 95% of its group business on an annual basis. The ETHNIKI has been an IGP Network Partner since 1968. Key Products Life Life Accidental Death and Disability Permanent and Total Disability Disability Long-Term Disability Short-Term Disability Medical Hospital and Surgical Major Medical Pensions Managed Funds The ETHNIKI is located on the internet at: http://www.ethniki-asfalistiki.gr (Information available in Greek) 2014 International Group Program 1
Social Security Eligibility: s: Mandatory for all employees in the private sector. Separate systems exist for government employees, banks, self-employed people, etc. The contributions for health, pensions, unemployment and family allowance are wage-related, based on real earnings up to the overall ceiling (monthly ceiling: 5,543.55). The combined contributions equal to 45.06% of payroll can be broken down as follows: 29.06% employer, 16.00% employee. For those who started working career on or before December 31, 1992 : for men and women with 4,500 days of contributions, according to the below table: s retirement Men Women 31.12.2014 and thereafter 4,500 65 65 Full Old Pension: i) For employees completing 10,000 days of contributions after 2010, new Minimum and Days of Insurance limits are valid, according to the below table: Year of completing 10,000 days of contributions MEN New required New required WOMEN 2014 11,800 64.5 11,800 59.5 2015 and thereafter 12,000 65 12,000 60 2014 International Group Program 2
or ii) according to the below table up to 2015: 31.12.2014 11,700 60 31.12.2015 and thereafter 12,000 60 or iii) iv) 40 years of contributions, upon completion of 60 years of age or 15 years of contributions with at least 4/5 of them in an unhealthy occupation: a pension beginning upon completion of 60 years of age (men) or 55 years (women), on the condition that at least 1,000 days of contributions under unhealthy occupation during the last 13 years before the pensionable age (60 for men and 55 for women) v) 35 years of insurance with at least 7,500 days of their career in unhealthy occupation according to the below table 31.12.2014 10,500 58 31.12.2015 10,500 58 + 9M 31.12.2016 10,500 59 + 6M 31.12.2017 and thereafter 10,500 60 Reduced Pension: s retirement Men Women 31.12.2014 4,500 65 59 31.12.2015 and thereafter 4,500 65 60 For those who started working career on or after January 1, 1993 : 40 years of contributions and age 60. Full Old Pension: Reduced Pension: At normal retirement age. 60 based on income criteria. Pension Benefits will be cut by 6% per year for people retiring between the ages of 60 and 65 with less than 40 years of service. 2014 International Group Program 3
Survivors: Payable if insured had 4,500 days of contributions, or at least 1,500 days of which 300 fall within the last five years preceding the year of death. (In case of an accident, only half of the above days of contributions are required. In case of an occupational accident, no restrictions apply with regard to the days of contributions). Widow's pension is 70% of basic OAP paid or accrued. An orphan's pension of 20% of the basic OAP paid or accrued is payable up to age 18. If full orphan, the pension is 60% of the basic OAP paid or accrued. Disability: Hospital - Medical: If an employee has made 4,500 days of contributions or 1,500 days of which 600 fall within the last five years preceding the year of disability, the benefit is calculated in the same manner as the old age pension and ranges from 50% to 100% depending on the degree of disability. Free hospital care is available through Social Security operated facilities for all insured workers and their dependents and for all pensioners and their dependents, at ward level. The insured can apply for hospitalization at a higher level, provided that he is willing to pay the difference at its own expense. Covered services include general and specialist care, hospitalization (including maternity benefits), medicine, and dental care. Major reductions on the social s security pensions took place between 2012 and 2013. Both primary and auxiliary pensions will be awarded 12 times per year instead of 14. Additional reductions between 5%-20% applied to all pensions above 1,000. As a result, 80% of the state pensions are now below 1,000/month while 67% are below 700/month. 2014 International Group Program 4
Private Benefits Group Life: Health Insurance: Pensions: Pensionable Salary: Benefit Formula: s: Financing: There is a basic group life benefit in every employee benefit plan. The benefit in case of death is generally 1-4 times annual salary (14 months). Plans are non-contributory, so premium is fully paid by the employer. Accidental Death and Dismemberment riders are common. There is a variety of plans, the majority being In- and Out-of-Hospital basic plans, but currently there are tendencies toward Major Medical Plans as well. For Out-of-Hospital and Major Medical benefits, there is usually coinsurance on a 20% / 80% basis. All of these plans satisfy the need of employees for better services compared to those provided by the Social Security. The objective to funding OAP is to supplement the Social Security state pension. The average salary during the last three years preceding the year of retirement (including Christmas and Easter bonuses). Some old plans are designed to provide benefits in conjunction with the Social Security pension (i.e., integration with Social Security). Currently, the most attractive plans are those providing a certain percentage (1% - 2%) of salary times years of service, with an option for an equivalent lump-sum. Generally, pension plans are non-contributory. Currently, the majority of pension plans in Greece are Deposit Administration Funds. (Defined is preferred.) 2014 International Group Program 5