Pension increases – Who “erases” the personal difference

The countdown to the increases in pensions has begun, with the recalculation and the new improved replacement rates of law 4670/2020 being the two key keys that “regulate” the final amounts that the beneficiaries will receive. With the new, improved replacement rates retirees who have more than 30 years of insurance will see increases in their payouts. And this is because their compensatory pension will change upwards. On the other hand, the recalculation will bring about reductions in personal difference, while with the appropriate conditions it brings increases in the income of the retired workers.
Social security experts report in that retirees who maintain a personal difference will see improvements in their pocket only if the increased pension resulting from the new law (Vroutsi) does not approach the pension they would be entitled to under the previous Katruggalo regime.
In detail, retirees to see the increase in their pocket, this must be greater than the personal difference they receive. If the increase exceeds the personal difference, the retired person will receive the remaining amount, after deducting the personal difference from the resulting increase. This practically means that a pensioner with 100 euros in pension who has a personal difference of 50 euros, will see in his pocket an increase of 50 euros.
In fact, some categories of retirees, especially those who retired in the two years 2017-2018, will take more breath. This is because the increase will be greater than the personal difference, with the result that the latter will be zero.
Indicatively, an insured person who retired in 2018 with an initial pension of 1,145 euros and a final amount of 1,221 euros with a personal difference of 76 euros will have a new pension of 1,261 euros with the recalculation. The net increase will be around 39 euros and the personal increase is zero.