The Federation of Employers and Industrialists (OEB) raised its concerns regarding the pension system with the President of the Republic, Nikos Christodoulides, its concerns regarding the pension system, emphasizing the need to ensure adequate pension benefits, said Federation President George Pantelidis on Monday from the Presidential Palace, following a meeting between the OEB Executive Committee and President Christodoulides.
Mr. Pantelidis described the meeting as “substantive and constructive,” noting that there was a “positive response” from the President on all the issues raised. He also expressed his belief that the ongoing dialogue will lead to solutions that will allow pension reform to move forward, at least in its first phase.
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“We had a very substantive and constructive meeting with the President of the Republic,” said the President of the OEB.
As he noted, important issues were discussed, such as pensions, labor costs, bureaucracy, and the shortage of human resources in key sectors of the economy. At the same time, there was a discussion regarding energy supply and costs.
“We agreed with the President of the Republic to maintain an open channel of communication,” noted Mr. Pantelidis.
He also said that a meeting with the business community will be held in November, with the entire Cabinet in attendance, aimed at exchanging views and identifying practical solutions to current economic issues.
“Our priority is to continuously support Cyprus’s competitiveness. Economic indicators are encouraging, with a growth rate of approximately 3.5%,” said Mr. Pantelidis.
He emphasized that on all the points raised with the President, “there was a positive response from the President regarding joint efforts and joint initiatives to support our local economy, for the benefit of both businesses and citizens.”
When asked whether the OEB had set any red lines regarding pensions, Mr. Pantelidis stated that these were not red lines. “We raised our concerns regarding pensions and emphasized that we are in favor of ensuring adequate pension benefits,” he noted.
As Mr. Pantelidis explained, the OEB expressed its concern about ensuring the Fund’s long-term sustainability in order to guarantee adequate pensions.
“We discussed various safeguards to ensure the adequacy of these pensions in the event of an economic crisis,” he noted.
“We reached agreement on specific areas to ensure a balance among the safeguards. I believe that, through the ongoing dialogue, we will identify the solutions needed to move forward with the reform, at least in its first phase,” said Mr. Pantelidis.
When asked whether the cost of the pension reform had been disclosed to the OEB, Mr. Pantelidis replied in the negative, noting that the government’s commitment to creating the necessary reserve within a specific timeframe had been discussed.
At the same time, he noted that the meeting emphasized the importance of the actuarial study, which will be conducted before 2031.
When asked about the shortage of nurses and the next steps, Mr. Pantelidis stated that the government has submitted or is in the process of submitting specific bills, which the OEB believes “are a step in the right direction.”
“The OEB will hold meetings with all parliamentary parties,” he said, noting that the goal is to present and advocate for its positions.
Mr. Pantelidis noted that “it is widely accepted that the shortage of nurses is a glaring problem.”
“I think we’ve entered into a substantive discussion to find practical solutions that require legislative measures,” he added.
As he said, the government “has embraced the business community’s recommendations, and we believe that during the consultations we will have with the parliamentary parties, a responsible stance will be maintained— not toward hospitals, but toward the state and the patient.”
When asked whether there have been any developments regarding the Surplus Fund, Mr. Pantelidis stated that “We emphasized to the President of the Republic that there is currently a reserve of one and a half billion, so the goal and purpose of ensuring the adequacy of the Surplus Fund is served by this reserve.”
“We expect the President of the Republic and the Government to decide to reduce this specific contribution and, at the same time, to adopt a safeguard in case it becomes necessary to redefine it at 1.2 billion. We expect announcements from the government,” concluded the President of the OEB.
