The dialogue on pension reform will continue in October at the Labor Advisory Council (LAC), as the Ministry of Labor and Social Insurance is open to the possibility of changes to the bill, even after it has been submitted to the House of Representatives, according to Minister Marinos Mousiouttas, following today’s discussion at the Labor Advisory Council.
When asked if he expects to submit the bill to the Cabinet next Wednesday, Minister Marinos Mousiouttas replied that “there may be a slight delay for technical reasons.” We had a lengthy discussion with the Attorney General and the Deputy Attorney General last week to finalize the legal review. If we have the final result by tomorrow, it could go forward on Wednesday. If not, it will go a week later.”
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In any case, he added, the official submission to the House of Representatives takes place on a Thursday, and the first available Thursday is October 8.
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Regarding today’s discussion in the Labor Advisory Body, the Minister, in remarks made after the meeting concluded, said that the discussion continued. “We were expecting proposals from our partners today. Some of the data that had been requested—regarding changes in pensions over time—were explained, and the actuary analyzed how pensions will fluctuate in the coming years.”
He then noted, “We briefly touched on the partners’ positions. I can’t say we made much progress,” he said.
The good news, according to the Minister, is that a roadmap has been established: discussions in the Economic and Social Council (ESS) will continue every Monday and Thursday throughout October, with the exception of October 1, which is a holiday, and October 5, when some ESS members were unable to attend. “So we expect the in-depth proposals from the parties involved to be submitted on October 8, so that we can determine whether or not these proposals can be accepted,” he said.
He added, moreover, that “the discussion will continue, regardless of whether the bill is first submitted to the Cabinet for approval and then to the House of Representatives.”.
Responding to a reporter’s question about possible changes being considered in the bill to be approved by the Cabinet, the Minister noted that during the discussion, the social partners had pointed out certain issues that need to be addressed. “If, in the end, they are right, there is no problem with amending the bill. One issue concerns dividends, another concerns the basis for calculating pensions, and another concerns what is considered a notional contribution. These are some details that, if adopted, would require amendments to the bill,” he said.
He clarified, however, that even if the changes cannot be made now, “nothing prevents us from making the change down the line.” As he explained, as with all decisions of the Cabinet, it will be noted that changes can be made without returning the bill to the Cabinet, while the agreed-upon changes can be presented directly to the Parliamentary Labor Committee.
When asked where the discussion on the payment of social security contributions on dividends is headed, the Minister said that discussions are continuing with the social partners, both within the framework of the Economic and Social Council and on a bilateral basis, “to find the most consensus-based position on the issue,” he said, as is the case with other issues.
He noted that today’s discussion did not reveal a need for any changes.
When asked to provide examples of the proposals put forward by the social partners during today’s discussion, Mr. Mousiouttas said that some mentioned the amount of the allowance for low-income pensioners, noting that it should be set at the poverty line. He also added that there was discussion regarding the 12% actuarial reduction and other issues.
When asked whether the employers’ position on a potential increase in the retirement age—following the actuarial study scheduled for five years from now—had been discussed, the Minister said that it had not been discussed, adding that “we do not endorse” that position. “Our position is that if there is a need for differentiation, it should be limited solely to the issue of contributions.”
Roadmap for Discussion of the Second Pillar
Furthermore, the Minister said that a roadmap had also been provided for the second pillar. “Meetings are held every Tuesday; the next one is on October 6, and they will continue every Tuesday through the end of October, with the ultimate goal—if and when a conclusion is reached—of reaching a framework agreement —and not legislation—concerning the second pillar, which “is, of course, necessary to supplement the pensions provided by the first pillar,” he said.
When asked about the government’s position regarding the second pillar, the Minister said he would not comment on it, as he is awaiting the conclusion of the dialogue with the social partners. “The issue will come before the Economic and Social Council, and once we hear where each organization stands, we will state our own position. The goal is to bridge this enormous divide,” he said.
It should be noted that labor unions are calling for Provident Funds to be made mandatory for everyone, while employer organizations are calling for them to be voluntary, with incentives provided.
According to the Minister, the positive aspect of today was the ongoing sessions on Pillars 0 and 1 and the roadmap for the second pillar.
“Our goal remains for the pension reform to take effect on January 1, so that people can feel the difference— whether small or large, in their pockets on February 1 when they receive their first payment,” he reiterated, adding that difficulties and obstacles exist “and I didn’t expect anything different. “However, I am optimistic that we will be able to achieve what we all owe the people right now.”
In closing, he noted that the dialogue is ongoing and “will not stop until the House reaches the point of sending the bill to the Plenary,” he said.
Source: CNA
