120,000 Armed Forces retirees will get pay increases due to the permanent repeal of the unconstitutional cut of Act 4093.
The stoppage affects those with 5%, 10% or 15% deductions on their dividends.
The increases from the suspension of the reservation range from 10 to 67 euros per month and concern all three Equity Funds, i.e. Army (MTS), Air Force (MTA) and Navy (MTN). The suspension of the detention of Law 4093 will also be applied to the branches of special aid (EKOEMS, EKOEMA, EKOEMN).
The “green light” to stop imposing the reduction of law 4093 on the dividends of the apostates was lit by the fact that in the Stock Funds of the Armed Forces the “social resources” derived from the armament expenditures were preserved. Since the country’s armaments program has been upgraded and increased by an additional billion euros from the new deals (Rafale, frigates), the military Equity Funds will be able to make up for the revenue losses from the abolition of the dividend cuts with the share that will have from the resources for equipment costs.
For this reason it was considered that the reservation can be removed without causing any problem in the payment of dividends.
The reduction of law 4093/2012 is imposed based on the sum of pension benefits received by pensioners from main pension, supplementary pension, dividends as follows:
*In the sum of pensions and dividends from 1,000 to 1,500 euros the reduction is 5%.
*In the sum of pensions and dividends from 1,500.01 to 2,000 euros the reduction is 10%.
*In the sum of pensions and dividends from 2,000.01 to 3,000 euros the reduction is 15%.
*In the sum of pensions and dividends from 3,000.01 euros and above, the reduction is 20%.
The sum of pensions taken into account for the reduction of Law 4093 is the one obtained after the deduction of the previous deductions (in this case after the EAS and after the reductions above 1,200 and above 1,300 euros in the main pensions).
Army retired with an initial mixed main pension of 1,900 euros and MTS and EKOEMS dividend of 380 euros has a main pension reservation of 114 euros from EAS, 117 euros from reservation of law 4024 and 44 euros reservation of law 4051, and from 1,900 euros it is reduced to 1,625 euros. Together with the 380 euros from dividend and EKOEMS, it makes a sum of 2,005 euros and has a reduction of law 4093 with a rate of 15% on both the principal and the dividends. He will lose 243 euros from the principal and 57 euros from the dividends. By removing the deduction from the dividend, he will get back the 57 euros, but it will not be the same as the main pension, as there the reduction will remain, even though it is unconstitutional.
An Air Force officer who retired with the rank of captain and with 35 years receives a dividend of 348 euros. With a 10% reduction from Law 4093, he lost 35 euros per month, while if he had a sum of pensions and dividends of more than 2,000 euros, the cut in the dividend was 52 euros. With the suspension of dividends, he earns 35 or 52 euros, that is, on an annual basis, he gets an increase of 420 to 624 euros.
A retired Navy officer with 35 years and the rank of master receives a dividend of 247 euros. With a 10% reduction from Law 4093, he lost 25 euros per month, while if he had a sum of pensions and dividends of more than 2,000 euros, the cut in the dividend was 37 euros. With the suspension of dividends, he earns the cut dividends and on an annual basis he gets an increase of 300 to 444 euros.
Attention: The dividends of the Aviation Equity Fund (MTA) were given an increase in share prices from 11 to 12 euros per share for the dividend and from 3 to 4 euros per share for the special dividend enhancement (EKOEMA). For example, before the increase, an Air Force veteran who had 25 shares received a dividend of 275 euros (25×11=275) and an EKOEMA of 75 euros (3×25=75), while with the increase in shares already in effect from May 2022, he gets dividend of 300 euros (25×12=300) and EKOEMA 100 euros (4×25=100).
