Anna Efthymiu, Deputy Minister of Labor and Social Security, presented the key provisions of the new bill on occupational insurance while speaking on a panel at the 7th Occupational Insurance Conference.
As she emphasized, the legislative measures being promoted aim to further develop the Occupational Insurance Funds (TEA), strengthening their role as a supplementary source of retirement income for insured individuals, in line with and to improve the institutional framework of high standards for supervision and governance established by Law 5078/2023.
The new framework is based on three key pillars.
Creation of Open Occupational Insurance Funds
The law provides for the creation of open Occupational Insurance Funds (OIFs), which will operate as “umbrella funds,” enabling more companies to participate without individual supervisory approvals, but only following an initial license from the competent authority, which will be granted under specific conditions.
This significantly broadens access to occupational insurance for smaller businesses and, by extension, their employees.
Full portability of insurance entitlements
The bill introduces the ability to easily transfer insurance entitlements between the TEA and other occupational pension products.
The new regulation responds to the needs of a modern labor market, where employees change employers more frequently, ensuring the continuity of retirement savings throughout their working lives.
New tax incentives and new occupational pension products
At the same time, new tax incentives are being introduced to encourage employee and employer participation in occupational pension funds, while efforts are underway to align the operational framework of the Occupational Pension Funds with the new Group Occupational Pension Insurance Products (OAPES).
The goal is to create a more modern, transparent, and functional occupational insurance environment.
The reform is part of the Ministry of Labor and Social Security’s overall strategy to strengthen occupational insurance, creating a more flexible and effective framework that broadens the options available to workers and businesses, enhances pension adequacy, and helps ensure a modern and resilient social security system for future generations.
Commenting on the measures, Anna Efthymiu stated:
“Occupational insurance is a key pillar of our strategy for a more resilient and sustainable pension system. We support and strengthen the second pillar of social security—the Occupational Insurance Funds—which operate as a complement to the first pillar, the pay-as-you-go system.
Our goal is to foster a culture of saving, whenever and wherever this is feasible for insured individuals. The goal is not to save more, but to save more effectively, by utilizing modern tools that offer greater security, transparency, and better prospects for future retirement income.
The development of occupational pension plans, expanding access for workers and businesses to occupational pension funds, and strengthening long-term savings are critical elements for shoring up the social security system and ensuring a long-term supplemental pension benefit”.