Within 48 hours—which, by all indications, will be on Wednesday—the bill on the Social Security Fund will be presented to the Labor Advisory Council, the first step toward pension reform.
“We’ve been waiting for it here for several days. I hope we’ll have it in our hands at least before the meeting. For us, it’s important that the bill ensures that pensions will see a substantial increase. That is why we are linking the reform to the overall approach in conjunction with the second pillar—we’re talking about new provident funds.” Andreas Matsas, Secretary-General of SEK
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
On September 1, the Technical Subcommittee on Welfare Funds is expected to meet again to discuss the issue, though no immediate announcement is anticipated.
“We will evaluate these changes, first, based on whether they will provide a decent basic pension for everyone. Second, whether the 12% issue is resolved in a fair and comprehensive manner that applies to both current and future retirees. Third, the issue of the non-payment of widow’s pensions is also important to us.” Sotiroula Charalambous, Secretary General of PEO
Both union representatives emphasized that it is essential to clarify how the pensions of low-income retirees will be adjusted, as well as the nature of the state’s social intervention, that is, the “small pension.”
They also expect to see a bill that specifies exactly where the funds will come from to finance the previously announced increases.
“We are waiting to see how the increase in low pensions will be funded. We are waiting for clarity on how pension benefits will be increased, and based on the government’s proposals, we are constructively ready to contribute in a way that will move us forward.» Michalis Antoniou, General Director of the Cyprus Chamber of Commerce and Industry (OEB)
The partners are also seeking clarification on how the Social Security Fund will be managed and how the national debt will be repaid.
“Certainly, the primary goal is to ensure the fund’s sustainability, and beyond that, the amount of pensions must be clear. Who are the low-income pensioners that taxpayers are expected to support—something we were told but did not fully grasp—and we need to see this clearly outlined.” Philokipros Rousounidis, Secretary General of KEVE
At the same time, the partners are requesting time to review the bill, since—aside from the fact that, as they say, it is two months late—it must also be examined by actuaries and experts they have enlisted. Furthermore, the bill must be presented to their collective bodies and leadership before any official position is taken.
From the Ministry of Labor’s perspective, the timeline remains unchanged. First, the bill is presented to the social partners; it then goes to the cabinet; on September 20, it is submitted to Parliament for debate; and on January 1, 2027, pensioners will see their pensions increase.
Watch the report by Kleio Vourkou
