A multi-dimensional social security scheme

OGA was established in 1961 by the law 4169/61 and is an independent organisation of public state administered by a nine-member Board of Administration, under the supervision of the Ministry of Employment and Social Protection. It has a central department at national level, 5 regional departments and also representatives in the whole country (employees of local self – governed municipalities).

Dealing with the whole social protection of rural population

The number of its insured people is 729,000 (contributors) and of the beneficiaries 2,040,000. OGA provides to its insured pensions, health care, family allowances and social programs. The volume of benefits paid to these people amounts to 5.6 billion € for the year 2004.

A long term evolution

OGA is in the middle of a transitional period that began in 1988 and is scheduled to finish in 2026. With this restructuring, OGA is transforming itself from a fully state subsidised system, where the insured persons did not have to pay any contribution to a mostly contribution-based insurance scheme, following the pay-as-you-go principle. From 1988 to 1997, the contributions were voluntary.

Towards a contribution-based insurance scheme

In 1998 the Main Insurance Branch was introduced, with compulsory contributions.

Seven contribution categories were provided: the insured people can choose one of the seven categories and have to pay 7% of a fixed amount set for each category.

The State participates, contributing with 14% on the same amount. The basic pension (flat rate) is decreased by 4% per year, starting in 2003, and the goal set for the year 2026 is the abolishment of this pension which is based on the State and its transformation to main pension based on contributions.