The House of Representatives appears set to water down pension reform legislation further as constitutional concerns force additional exemptions for senior officials, undermining promises of substantial reform to multiple pensions and controversial retirement benefits.
The laws will return to parliament’s plenary session today for decisions on presidential referrals, following a parliamentary finance committee meeting that highlighted confusion over meaningful and fair regulation of the issue.
Expanding exemptions
What began as promises for essential reform affecting current and former officials now appears likely to exclude future officials as well.
The committee indicated it will vote today to exempt existing state officials, including judges, judicial service members, public service commission members and the central bank governor, deemed constitutionally protected.
“As time passes and as we try to make the legislation ‘constitutional’, we are gradually removing categories of people initially covered by the law proposals,” said DEPA MP Marinos Mousiouttas.
“First former officials were exempted, then through amendments, current ones, and today, based on legal service opinions, some categories of future officials are being removed”.
Constitutional challenges ahead
Finance Committee Chair Christiana Erotokritou said other issues requiring attention include legislative wording to ensure constitutional protection, with the main problem being the legal service’s view that parliament is interfering in executive branch matters regarding multiple pensions, essentially violating separation of powers.
Changes may also affect the provision for a minimum payment of €500 from pensions with suspension of remaining amounts, as this appears to violate other laws and property rights.
Uncertain future
Committee members indicated that even if these specific changes are decided, nobody can guarantee the decisions and laws will not ultimately be deemed unconstitutional.
Two scenarios exist: President Nikos Christodoulidis may refer the laws to the Supreme Constitutional Court if executive branch proposals are not adopted, or affected individuals may appeal to court, as happened previously when affected parties successfully challenged multiple pension restrictions in court.
Mousioutas warned that even if the laws are eventually deemed constitutional, specific categories of officials will be exempted, preventing unified and fair treatment for all those enjoying multiple pensions and other retirement benefits.
Presidential referral requests
President Christodoulidis had requested specific changes to make the legislation constitutional, including removal of restrictions on the definition of “office, function or position” because offices were not included in the law.
He also identified problems with setting €500 as minimum pension payment, as this interferes with private property matters.