The new Hellenic Auxiliary Pensions Defined Contributions Fund is a Legal Body Governed by Public Law. It was established by law 4826/2021 and is part of the first pillar of the social security system.
It is mainly geared towards new entrants to the labour market and it will gradually replace the existing auxiliary insurance scheme.
The benefits provided by TEKA complement main pensions and therefore help establish income security after retirement. The contributions paid by insured persons and employers are credited to each insured person’s individual account which is always accessible through the myTEKA platform. The capital, comprising the accumulated contributions, is invested and the returns are once again credited to each insured person's individual account. At the end of a person’s work life, the accumulated capital, i.e. the sum of the contributions and returns, translates into a life-long monthly auxiliary pension. The new system also provides for disability and survivor’s pensions.
Objectives
The transition to the new DC auxiliary pensions system aims to:
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Ensure higher auxiliary pensions for the younger generation of insured persons.
- Support the sustainability of the social security system and mitigate the impact of the demographic problem and spread the insurance risk.
- Restore young people’s trust in the social security system. Insurance and future pensions become relevant for young people while undeclared work is disincentivised.
- Contribute to the development of the Greek economy by investing part of the Fund’s contributions in the domestic market.
Transparency and accountability
Strict transparency and accountability rules apply to TEKA’s operation and a robust array of internal and external controls has been put in place as described in detail in the law.
The Fund’s services and internal workings reflect the focus on openness, both internally and in relation to other private and public entities and institutions. Good governance principles are implemented and best practices are adopted aiming to build trust and mutual commitment between TEKA and the insured persons.
All of the fund’s business activities and operations are accessible to our insured persons, creating an unprecedented control and accountability system in Greece.
TEKA and e-EFKA
The new Hellenic Auxiliary Pensions Defined Contributions Fund is a Legal Body Governed by Public Law and is part of the first pillar of the social security system.
TEKA contributions are collected by the Electronic National Social Security Fund (e-EFKA).
e-EFKA has been assigned to keep the Register, check that employers submit correct Analytical Periodic Declarations, issue the payment notices of the non salaried, as well as check the payment of contributions.
TEKA is responsible for determining insurance eligibility, monitoring payments, crediting the individual accounts, investing the accumulated capital in the individual accounts, and pension benefits.