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> Economy

Public sector pensions: No recognition for years before permanent appointment – The implications

The Ministry of Labour has clarified that service in the public sector before permanent appointment is not recognised as pensionable, but only for salary and grade progression. Employees can only count this time through succession insurance

Newsroom February 12 04:55

The Ministry of Labour clarified that prior service in the public sector before permanent appointment is not recognized as pensionable, but only for salary and rank progression. Employees can calculate this time only through consecutive insurance.

The Ministry of Labour ruled out the possibility of recognizing as pensionable the prior service of public sector employees before their permanent appointment, clarifying that this prior service is only counted for salary and rank progression.

This means that those who worked in the public sector on a fixed-term contract or indefinite private law contract before their permanent appointment cannot count these years towards establishing their pension rights under public sector provisions. The time will only be considered within the framework of consecutive insurance.

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For example, a female employee with 25 years of service in 2012, three of which were as a contractor and 22 as a permanent employee, cannot retire under the provisions for a minor child, as her prior service is not recognized as pensionable. To cover the gap, she would need to purchase fictitious years.

The response of the Deputy Minister of Labour, Panagiotis Tsakloglou, to a question in Parliament confirmed that Law 4440/2016 allows for the salary and rank recognition of the service time of candidates from the 1995 ASEP competition, but this does not imply pension recognition.

The Ministry clarifies that, according to pension legislation, for a period to be considered pensionable, there must be insurance and payment of contributions. Employees who worked before their permanent appointment can calculate this time only through consecutive insurance, and not as service time in the public sector.

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