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However, other changes made in the year 1980 may have compensated for the effects mentioned above. Specifically, a requirement was introduced whereby workers who changed to the AFP system would need 20 years’ contributions in order to qualify for this (benefit and
not 10 years, like the workers who contribute under the old system). An other requirement imposed on this group was that, to qualify for the minimum pension, their total income, and not just the sum of their pensions, should be less that the minimum pension84. On the other hand, expenditure on welfare pensions rose during the years of economic crisis (mainly due to the increased number of beneficiaries) and then fell to levels similar to those observed at the beginning of the decade. The sum of minimum and welfare pensions reached a maximum of 0.53% of the GDP in 1986 and then leveled at around 0.3% of the GDP (see Table 5).
As a result of all these effects, the total social security deficit rose from 4.1% in 1981 to a maximum of 8.4% of GDP in 19 82. Since that date it has decreased steadily, reaching 3.9% of the GDP in 1998 (see Table 5)85.
However, other changes made in the year 1980 may have compensated for the effects mentioned above. Specifically, a requirement was introduced whereby workers who changed to the AFP system would need 20 years’ contributions in order to qualify for this (benefit and
not 10 years, like the workers who contribute under the old system). An other requirement imposed on this group was that, to qualify for the minimum pension, their total income, and not just the sum of their pensions, should be less that the minimum pension84. On the other hand, expenditure on welfare pensions rose during the years of economic crisis (mainly due to the increased number of beneficiaries) and then fell to levels similar to those observed at the beginning of the decade. The sum of minimum and welfare pensions reached a maximum of 0.53% of the GDP in 1986 and then leveled at around 0.3% of the GDP (see Table 5).
As a result of all these effects, the total social security deficit rose from 4.1% in 1981 to a maximum of 8.4% of GDP in 19 82. Since that date it has decreased steadily, reaching 3.9% of the GDP in 1998 (see Table 5)85.
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