The Legality of Public Pension Reforms in Times of Financial Crisis (eBook)

Cover 1
Introduction 15
A. Background 15
B. The Subject-Matter of the Book 16
I. Aim of the Book 17
II. Legal Research Questions 18
III. Methodology 21
IV. Progression of the Argument 22
Chapter One: The Influences of the Pension Reforms 2010-2012 26
A. The Influences of the Pension Reforms Prior to the Financial Crisis 27
I. Normative Factors 31
1. International Guidelines on Pension Reforms 31
2. European Economic and Monetary Union 33
3. Open Method of Co-Ordination 35
II. Factual Factors 38
1. Financial Imbalances in the Greek Public Pension System 38
2. Demographic Changes 41
B. The Influences of the Pension Reforms After the Financial Crisis 44
I. The Financial Crisis 44
II. The Conditionality of the Financial Facility Agreements 47
1. The Content of the Financial Facility Agreements 47
2. The IMF’ Policy of Conditionality 53
3. The Legal Status of the Agreements and their Element of Conditionality 56
III. Concluding Remarks 61
Chapter Two: The Greek Public Pension System 2010-2012 64
A. Overview of the Greek Public Pension System 64
I. Horizontal Dimension – Personal Scope of Coverage 66
II. Vertical Dimension – Form and Function 68
B. Pension Reforms Affecting Prospective Pensioners 71
I. Safety-Net for Elderly 73
1. Safety-Net Inside the Scope of the Pension System 73
a) Basic Pension 74
b) Social Solidarity Benefit (EKAS) 76
2. Safety-Net Outside the Scope of the Pension System 76
II. Proportional Pension 77
1. Qualifying Conditions 77
a) Pension Age: Pre and Post Crisis 78
aa) Normal Pension Age 78
bb) Early Pension Age 80
cc) Late Pension Age 81
b) Pensionable Service 82
aa) Minimum Pensionable Service 82
bb) Full Pensionable Service 83
cc) Recognition of Notional Insured Period 83
2. Financing 84
III. Supplementary Old-Age Pension Benefits 88
1. Qualifying Conditions 90
2. Objective and Calculation Method 90
IV. Further Regulations 92
1. Arduous and Unhygienic Professions 92
2. Invalidity Pension 94
3. Survivor’s Pension 96
4. Employment of Pensioners 98
C. Pension Reforms Affecting Current Pensioners 98
D. Concluding Remarks 103
Chapter Three: The Protection of Pensioners’ Existing and Future Legal Positions 106
A. Legal Provisions Protecting the Right to Old-Age Pension Benefits 107
I. The Right to Property 107
1. Protection of Allocated Pension Benefits 109
2. Protection of Pension Benefits to be Allocated in the Future 112
II. The Principle of Legitimate Expectations (Protection of Confidence) 117
III. Equality and Non-Discrimination 121
1. The Right to Equality 121
2. The Principle of Non-Discrimination 124
IV. The Right to Social Security 127
1. The Right to Social Security under International Law 127
a) The International Treaties (A Normative Description) 128
aa) Universal Declaration of Human Rights 128
bb) International Covenant of Economic, Social and Cultural Rights 128
cc) European Social Charter 130
dd) European Code of Social Security 131
ee) ILO Convention No. 102 133
b) The Right to Social Security as an Objective Right in International Law 135
2. The Right to Social Security under the Greek Constitution 140
a) The Constitutional Provisions 140
aa) The Right to Protection of Old-Age 140
bb) The Right to Social Insurance – Article 22(5) 141
b) The Right to Social Security as an Objective Right 142
c) The Right to Social Security as a Subjective Right 143
B. Concluding Remarks 149
Chapter Four: The Public Interest in Times of Financial Crisis 151
A. Public Interest and the State Power 152
B. The Financial Crisis as a Public Interest 159
C. The Aims of the Public Pension Reforms 163
I. The Sustainability of the Public Pension System 163
II. The Fiscal Interests of the State 168
III. The Proper Functioning of the EMU 178
D. Concluding Remarks 182
Chapter Five: The Principle of Proportionality as a Balancing Concept in Case-Studies of Pension Reforms 185
A. The Principle of Proportionality 186
B. Case-Studies 193
I. Reductions in Old-Age Pension Benefits 194
1. Reductions in Current Pensioners’ Pension Benefits 194
a) Application of the Right to Property 195
b) Reviewing the Proportionality of Pension Reductions 196
aa) Suitability 197
bb) Necessity 202
cc) Proportionality in a Narrow Sense 205
c) Respecting the Principle of Legitimate Expectations (Protection of Confidence) 216
d) Respecting the Principle of Equal Contribution to Public Charges 221
2. Reductions in Prospective Pensioners‘ Pension Benefits 224
a) The Increasing of Retirement Age as a Restrictive Measure 225
b) Do Prospective Pensioners have Legitimate Expectations that Transitional Measures will be introduced? 228
II. Reduction in Old-Age Pension Benefits of High Value 232
1. The Principle of Equivalence as an Aspect of the Right to Social Insurance 233
2. The Principle of Social Solidarity as a Ground of Justification 235
3. Proportional Balance between the Principles of Equivalence and Social Solidarity 237
III. Age Discrimination Cases 244
1. Mandatory „Pre-Retirement“ Reserve Scheme 246
2. Abolition of Bonuses for Pensioners Below the Age of 60 254
C. Outcomes of the Case-Studies 259
I. The Decisive Role of the Financial Crisis on Judicial Development 259
II. Enhancing the Right to Social Insurance 269
III. Limits on the Interference with Pensioner’s Rights 274
Conclusion 279
Bibliography 287
List of Documents 301