The Lower House on Wednesday approved a government decree giving a one-off payment to around 3.7 million pensions after a recent Constitutional Court ruling against a 2011 freeze on index-linked rises in State pensions. It cleared the House with 310 votes in favour, 164 against and two abstentions. The decree, which must be approved by July 20, now passes to the Senate. The pensions will receive the one-off payments, averaging around 500 euros, in August.
But people with State pensions of over 3,200 euros a month gross will be excluded from the payouts and legal challenges are likely.
The government's plan will cost the State around 2.18 billion euros, compared to estimates that it would cost up to 18 billion to give a full rebate to all pensioners.
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