Law 5327/2026 (Government Gazette A' 132/28.08.2026) is a reform that strengthens and modernises occupational pensions in Greece. Its main goal is to grow supplementary retirement saving and to align the operating rules of Occupational Pension Funds (TEA) with those of corporate Group Pension Contracts.
Below are the key points of the law, followed by answers to the questions we hear most often from businesses and members.
1. New vehicles: Open Pension Funds and OAPES
- Open Occupational Pension Funds: funds can now be set up that new businesses and employers may join with simple approval from the fund's board. Open funds must run a strict compliance system.
- Group Occupational Pension Insurance Product (OAPES): a standardised funded product offered by insurers, operating under terms and rules similar to those of pension funds.
2. Higher tax-free contribution limits from 1/1/2027
- Employees: the annual cap on combined employee and employer contributions rises to 35% of gross pay, up from 20%. Contributions within the cap are exempt from income tax.
- Self-employed: the cap is set at €35,000 per year (up from €20,000), indexed annually to consumer prices. OAPES contributions are deductible from taxable income up to this amount.
- New members over 55: people joining for the first time after age 55 keep the previous limits of 20% for employees and €20,000 for the self-employed.
3. When benefits are paid
The main condition is receiving an old-age pension from the main social security fund. Alternatively, benefits can be drawn after age 55, though taxation between 55 and 61 needs care.
- No benefit is paid before age 55 for any reason.
- Early surrender is not permitted.
- If the member dies, the accumulated balance is paid to the beneficiaries.
4. Age-based taxation of benefits
For amounts accumulated from 1/1/2027, benefits are taxed separately at a rate set by the member's age when payments begin:
- Over 67: 5% on a lump sum (2.5% on periodic payments)
- 62 to 67: 10% on a lump sum (5% on periodic payments)
- 55 to 61 and receiving a main pension: 10% on a lump sum (5% on periodic payments)
- 55 to 61 without a main pension: taxed under the standard income tax scale for salaries and pensions
A periodic benefit is one paid for life or for at least 15 years, in fixed or increasing instalments.
5. Supervision, registration and member protection
- Bank of Greece: takes over prudential supervision of pension funds, as it already does for insurers.
- Public OAPES register: only products entered in the Bank of Greece's electronic register may use the name "OAPES". The filing includes standard terms, investment and risk management, an investment policy statement, a Key Information Document (KID) and a defined target market.
- Ring-fenced assets: each OAPES plan's assets are managed separately from the provider's other business and from other plans.
- Vesting: for OAPES, the combined waiting and vesting period for employer contributions is at most 3 years.
6. Portability and plan transfers
Employees can move their pension rights when they change employer or professional status, between funds, from OAPES to a fund or to another OAPES, free of charge. Whole plans can also be transferred between funds and OAPES, subject to Bank of Greece approval.
7. Transition period until 31.12.2027
Until 31.12.2027, existing Group Pension Contracts are treated as OAPES for tax purposes. From 1.1.2028, group plans not registered as OAPES may continue but lose the tax advantages. That makes 31.12.2027 the key date for deciding whether to convert.
Frequently asked questions
I already have a group pension plan. Does anything change before 31/12/2026?
No. Amounts accumulated up to 31.12.2026 are taxed under the rules in force when they were accumulated:
- Amounts up to 31.12.2023: 10% on a lump sum up to €40,000 and 20% on the part above €40,000.
- Amounts from 1.1.2024 to 31.12.2026: based on years of membership: 20% up to 5 years, 15% for 5 to 10 years, 10% for 10 to 20 years and 5% over 20 years. Total time in the group contract up to 31.12.2026 counts.
On early surrender, these rates increase by 50%.
What changes from 1/1/2027?
New amounts are taxed using the age-based rates in section 4, and the contribution cap rises to 35% for employees (€35,000 for the self-employed).
Do I have to convert my contract to OAPES during 2027?
There is no automatic conversion. However, to keep the special tax treatment from 1.1.2028, the plan must join OAPES.
Can I terminate my contract during 2027?
Yes. A group pension plan is a voluntary benefit offered by the business. Tax on any payout depends on when each portion was accumulated (up to 2023, 2024 to 2026, from 2027), as described above.
If I set up a group pension plan today, what applies?
A business can sign a group pension contract today that qualifies as a potential OAPES, with the final decision to join due by 31.12.2027. Contributions up to 31.12.2026 fall under the 20% cap (€20,000 for the self-employed), rising to 35% (€35,000) from 2027.
Conclusion: tax advantages change the rules of the game
The new law significantly increases tax benefits for both employees and businesses. From 1/1/2027 the cap on tax-exempt employee contributions rises to 35% of gross pay, up from 20%. For the self-employed, the cap becomes €35,000 per year (up from €20,000), creating a highly attractive tax-efficient way to save. The previous limits of 20% and €20,000 still apply to members aged 55 and over joining an OAPES for the first time.
Employer contributions to OAPES remain a deductible business expense, while members' own contributions benefit from the tax treatment of the new framework.
The new benefit tax regime also rewards staying in the system for the long term. Between ages 62 and 67 a lump sum is taxed at 10%, and after 67 the rate drops to 5%.
If your business already has a group pension plan, or is considering one, now is the time to plan the transition ahead of 31.12.2027. Our team can help you assess your options.
This article is for information only and does not constitute legal or tax advice.