Reforming the Greek Pension System

IMF Working Papers

Source details

Canonical URL

Reforming the Greek Pension System

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Alvar Kangur, Niki Kalavrezou, Daehaeng Kim
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781513588841.001

Executive summary and diagnosis

• The Greek pension system has been costly, complex, and distortive, which has contributed to Greece’s fiscal problems and discouraged labor force participation.
• Several attempts to reform the system faltered due to lack of implementation, pushback by vested interests, and court rulings leading to reversals.
• A series of reforms introduced throughout 2015–17 unified benefit and contribution rules, removed several distortions and reduced fragmentation and costs.
• If fully implemented throughout the long-term, these reforms can go a long way towards enhancing the pension system affordability.
• Reforms faced setbacks and fell short of creating stronger incentives to build long contribution histories, to deliver sustainable growth by improving the fiscal policy mix, and to ensure fairness and equitable burden sharing across generations and interest groups.

Major findings

• The 2015–17 reforms:
  • unified benefit and contribution rules;
  • removed several distortions; and
  • reduced fragmentation and costs.
• Remaining shortcomings:
  • incomplete implementation of the 2015–17 reforms;
  • insufficient incentives for longer contribution histories;
  • limited impact on delivering sustainable growth via an improved fiscal policy mix; and
  • unresolved issues of fairness and equitable burden sharing across generations and interest groups.

Policy priorities and recommendations

• Policy priorities should aim towards fully implementing the 2015–17 reforms.
• Complement the 2015–17 reforms with additional reforms to address:
  • incentives to build long contribution histories;
  • measures to support sustainable growth through a better fiscal policy mix; and
  • measures to ensure fairness and equitable burden sharing across generations and interest groups.

Context and publication

• Publication: IMF Working Papers.
• Authors: Alvar Kangur, Niki Kalavrezou, Daehaeng Kim.
• Publication date: July 16, 2021.
• Working Paper No.: 2021/188.

Content in this bundle

• Reforming the Greek Pension System, WP/21/188, July 2021
  • Reforming the Greek Pension System, WP/21/188, July 2021 (Markdown version)
  • Reforming the Greek Pension System, WP/21/188, July 2021 (PDF)