Public sector unions are pushing the government to launch a new early retirement scheme that would allow civil servants and teachers to exit the workforce without facing pension penalties.
The Umbrella Organisation of Trade Unions and Associations of State Employees, led by PASYDY and representing nine unions, has formally requested that Finance Minister Makis Keravnos abolish actuarial reductions for members retiring before the statutory age.
The unions argue that the current penalties are “memorandum-era measures” introduced during the 2013 financial crisis that are no longer justified. They are seeking a model similar to the 2020 scheme, which saw 700 employees depart without pension cuts.
In a letter seen by Phileleftheros, the unions stated: “As organisations of state employees, we believe that actuarial reduction factors act negatively and as a deterrent to voluntary early retirement… and constitute a memorandum measure that should, based on new data, be abolished.”
The issue has been discussed twice before the Joint Personnel Committee (MEP). During a session on 20 February, government representatives reportedly pledged to examine the request. Sources suggest the state is viewing the proposal with a “positive disposition,” though any new scheme would require fresh actuarial studies and costings.
Union leaders also highlighted that state pensions are now calculated based on career-average earnings rather than final salary, a shift they claim warrants a full review of the system.
The previous 2020 scheme targeted employees within five years of retirement or those with over 33 years of service. While 4,088 employees were eligible at the time, only 700 took the option. Despite the lower-than-expected uptake, the government estimated long-term savings of €106 million over 20 years by replacing senior staff with new hires on lower entry-level salaries.
The push for reform is currently linked to broader pension discussions taking place within the Labour Advisory Board, which is also considering changes to actuarial reductions for private-sector workers.