Greece Submits Cutbacks Bill to Parliament

13.5 billion austerity plan

Greece submitted to Parliament Monday a draft bill cutting public servants's salaries and pensions and increasing the retirement age as part of 13.5 billion euro austerity plan demanded by international creditors.

In a copy of the draft bill, set to be voted on by lawmakers Wednesday, pensions will be cut by up to 15%, depending on income levels, retirement bonuses for public sector employees will be slashed by up to 83% and the retirement age will increase to 67 from 65 currently.

Other changes include dropping the Christmas and Easter bonuses paid to public sector employees and placing them in a labor reserve in a bid to cut the public sector's wage bill.