EFKA: What changes the unification of systems brings to pensions, debts and contributions

Summary

More than 10 different pension systems, old registries, years of debts and millions of insurance data records are entering the final unification process this summer, which is thus considered the most critical of the insurance reform.

It is no coincidence that the governor of EFKA, Dr. Alexandros Varveris, speaking to Euro2day.gr, points out that the Agency is entering the most difficult but also the most decisive summer in its history. New information systems, data transfer, unified rules for all insured persons and the major transition of pensions, debts and insurance clearance to one central system will happen now.

And indeed, in real time. The changes are expected to peak by Autumn, with disruptions considered inevitable, as of course are the benefits, which according to the governor concern millions of citizens.

In detail, this summer is expected to be perhaps the most important transitional period in EFKA’s history. This is because already, behind the daily transactions of millions of insured persons, an extensive plan to unify procedures, information systems and operating rules is underway, aiming to address chronic dysfunctions inherited by the organization from the dozens of former insurance funds.

The changes are not merely technical. They concern an overall reorganization that affects the way pensions are issued, debt management, insurance clearance, insurance capacity and overall the citizen’s relationship with the insurance agency.

What changes now

The undertaking, as the EFKA governor himself acknowledges, will not be smooth. On the contrary, in the coming period it is considered certain that there will be disruptions, as the changes are being implemented while EFKA continues to operate normally, without interrupting its services for even one day.

As Mr. Varveris explains, one of the biggest problems EFKA continues to face is the coexistence of different rules originating from the old insurance funds. Despite the fact that EFKA was established as a unified agency, many procedures continue to operate with different logics depending on the citizen’s insurance origin. Pending unified insurance and benefits regulations, the administration is gradually attempting to unify these practices through horizontal arrangements.

A characteristic example is the uniform application of the 10% withholding in cases of unduly paid amounts, replacing different regimes that applied until now in the former funds. The philosophy is simple: the more unified rules are applied, the more easily procedures can be automated and errors limited.

From multiple registries to the “single source of truth”

At the same time, a second, less visible but extremely critical intervention is underway. EFKA is gradually abandoning the logic of multiple registries and adopting the principle of the “single source of truth” (one authentic data source per item), as the Governor notes.

What does this mean? That basic citizen data will not be maintained in different databases, but will be drawn each time from the competent source. For example, changes in identity, marriage or family status details will be updated through state registries and not through separate procedures within EFKA. The goal is to reduce data discrepancies that often lead to delays, errors or inconvenience for insured persons.

The first milestone in July: new KEAO and non-salaried

The first major milestone comes in July. EFKA is proceeding with the activation of the new KEAO (Center for the Collection of Insurance Debts), with upgraded debt and payment management capabilities. However, the most important change concerns the transfer of critical functions for the non-salaried from IDIKA’s old information systems to EFKA’s unified information environment. This is a transition that affects:

• insurance clearances,
• payment certificates,
• insurance capacity,
• contribution management,
• parallel insurance clearances.

The new architecture allows much faster clearances. Until today, in many cases clearance took place once a year. In the new model, the process can be carried out quarterly and, in the future, even more frequently.

EFKA’s administration acknowledges that changes of this magnitude cannot be made without problems. Data transfers, the parallel operation of old and new systems and the interconnection of different applications may cause temporary malfunctions.

In practical terms, this may mean delays in certain electronic services or a temporary inability to issue specific certificates. The same happened during the implementation of the changes to the APD (Analytical Periodic Employer Statement), where the first months were accompanied by significant difficulties for both employers and the organization’s services. However, according to Mr. Varveris, the experience of that transition served as a guide for managing the next phase.

The second milestone in September: pensions

The second major milestone is set for September. Then begins the integration of pension procedures into the new unified information environment. Today, pensions continue to be supported by numerous different systems originating from the former funds.

A corresponding fragmentation exists in supplementary pensions and lump sums. The plan provides for the gradual creation of a unified platform, to which both procedures and citizens’ insurance history will be transferred. This transition is not completed in a few months. According to the plan, full implementation extends beyond Autumn.

For the citizen, the goal of the reform is specific:

• faster service,
• greater reliability,
• fewer errors,
• uniform treatment regardless of former fund,
• more electronic services,
• fewer visits to branch offices.

Today there are still cases where the issuance of insurance clearance or the recognition of insurance capacity depends on old systems and manual checks. The existence of many parallel databases increases the likelihood of errors and delays. The unification aims precisely to limit these problems.

The changes being implemented are considered among the biggest ever made in the insurance agency and require the parallel operation of old and new systems, data transfers and continuous monitoring. The challenge for EFKA is to manage this transition without disrupting the daily service of citizens.

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