A raise for all retirees—123,000 in total—and a reduction of the 12% penalty for retiring at age 63, as outlined in the proposal by the Ministry of Labor and Social Security regarding pension reform, which was presented on Wednesday by the minister in charge, Marinos Mousiouttas, as he himself stated following the conclusion of the Labor Advisory Council’s session on this issue.
As Mr. Mousiouttas stated, of the 123,000 old-age pensioners today, all will be positively affected, noting, for example, that approximately 50,000 retirees will see an increase of more than 100 euros per month and around 60,000 will see an increase of less than 100 euros per month over the next five years, while future retirees with low earnings may see increases ranging from 5% to 60% compared to the current system.
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SEE ALSO: “Adequacy and Security”: Pension reform presented to social partners
For his part, Cyprus’s Chief Actuary, Costas Stavrakis, stated that the new system will streamline the system and, as a result, there will be a burden on public finances in the order of 50 million each year for the first five years, while at the same time ending the government’s borrowing from the Social Insurance Fund.
Regarding the 12% reduction in the event of early retirement, the Minister said that there is a proposal to reduce the actuarial adjustment from 12% to 7.5% for the base portion of the pension.
He added that the discussion will continue during the next session of Parliament on August 28, with the goal of implementing the reform as of January 1, 2027.
SEE ALSO: Pension Reform: “People Should Notice a Difference in Their First Payments at the End of January 2027”
Source: KYPE
