The demographic problem and the rapid aging of the population highlight the development of occupational insurance as a necessary condition for maintaining adequate pension benefits in the coming years.
This was the key conclusion that emerged from the proceedings of the 7th Occupational Insurance Conference, where both the Governor of the Bank of Greece, Yannis Stournaras, the political leadership of the Ministry of Labor, and the majority of speakers from the private sector all emphasized that the second pillar of social security is called upon to play a much more central role in the future.
Although this is an institution that has existed in our country for nearly 25 years, and this year marks the seventh consecutive year that ELETEΑ has held its conference, the speakers highlighted the strengthening of retirement savings through the Occupational Insurance Funds (TEA) as the most realistic response to the challenges facing the social security system. This is because all voices concurred that public pensions alone will struggle to ensure adequate replacement rates for future generations of workers.
New Bill
In this context, the market is now turning its attention to the new bill being drafted by the Ministry of Labor, which, according to Labor Minister Niki Kerameos, is expected to give the system a new boost. In presenting the key directions of the reform, Deputy Minister of Labor and Social Security Anna Efthymiu emphasized that the proposed measures include the creation of “open” occupational pension funds, so that smaller businesses can more easily join occupational pension schemes, full portability of insurance entitlements when employees change employers, as well as new tax incentives that will make participation more attractive for employers and insured individuals. At the same time, efforts are underway to align the operational framework of the TEA with the new Group Occupational Pension Insurance Products.
The market is awaiting the final provisions of the bill with great interest, as it believes they can significantly accelerate the institution’s penetration into the Greek economy. A notable example is the TEA of the Panhellenic Hoteliers Federation, which is currently awaiting licensing and is expected to become one of the country’s largest sector-specific funds. According to the Union’s president, Christos Nounis, this initiative involves more than 10,500 hotel businesses and approximately 150,000 employees, reflecting the growth potential that exists in the sector of multi-employer and industry-specific funds.
Industry Data
Moreover, even amid a period of relative stagnation, industry figures show an upward trend. The value of the assets held by the sectoral funds, as noted by Mr. Nounis, reached 2.83 billion euros at the end of 2025, while market representatives estimate that the completion of the new regulatory framework could serve as a catalyst for the creation of new funds and the attraction of more employees. Specifically, according to Mr. Nounis, as of December 31, 2025, the total assets of all Voluntary Insurance Funds (TEA) in Greece amounted to 2.833 billion euros, marking an annual increase of 12.9%. Specifically, the Voluntary Insurance TEAs reported assets of 621 million euros, an increase of 33.5% compared to the previous year. Over time, from 2012 to 2025, the asset value of Voluntary Insurance Funds increased by 620%, rising from 86 million euros across 9 funds in 2012 to 621 million euros across 29 funds in 2025.
In terms of investment returns, the weighted average return on the managed portfolio of all occupational insurance providers stood at 7.2% in 2025, compared to 7.6% in 2024 and 9.5% in 2023. At the same time, Greek occupational pension funds recorded an average annual investment return of 4.5% during the 2011–2025 period, a figure which, according to Mr. Nounis, reflects the effectiveness of their operations and the investment management of their reserves.
European Strategy
The Minister of National Economy and Finance, Kyriakos Pierrakakis, also welcomed the conference proceedings with a video message, who directly linked occupational pension insurance to the European Union’s strategic initiative for the Savings and Investments Union (SIU).
As he noted, Europe is called upon to finance the major priorities of the coming decades—from defense and energy independence to digital infrastructure, artificial intelligence, and the technologies of the future.
“Who will finance Europe’s future? The answer is simple: Europe itself,” he noted. Mr. Pierrakakis emphasized that there are more than 13 trillion euros in private savings in Europe and that the major challenge is to create the conditions so that a larger portion of these funds is invested within Europe to support growth, innovation, and competitiveness.
He placed particular emphasis on the role of occupational pension funds, noting that they are “at the heart of the solution,” as they function as institutions for long-term savings and investment. As he noted, occupational insurance “builds bridges between citizens’ financial security and the economy’s growth needs,” while he emphasized that the development of the second pillar is a strategic choice for Greece.