*Press Release
The President of the Board of Directorsof the Cyprus Chamber of Commerce and Industry (CCCI), Stavros Stavrou, and a delegation from the Executive Committee.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The CEB noted that the proposed reform constitutes a profound change in the architecture of the pension system, involving a redistribution between basic and supplementary pensions, new categories of contributions and credits, and significant fiscal and employer-related implications. Before it is finalized, a comprehensive overview of the costs, funding sources, and impacts by category of insured persons is required—information that has not yet been provided by the Ministry of Labor.
The KEVE recognizes the need to modernize, simplify, and strengthen the adequacy of the pension system so that it can respond more effectively to contemporary demographic, social, and economic challenges. At the same time, a reform of this magnitude must be based on comprehensive actuarial and fiscal analysis, ensure the long-term sustainability of the Social Security Fund, proportionality between contributions and benefits, as well as stable and predictable costs for businesses and insured individuals. Of particular importance is also a fair transition to the new system, without disproportionate burdens or the creation of new imbalances among categories of workers, income groups, or generations.
The KEVE expressed its deep concern and reservations and pointed out that the current bill contains several ambiguities that require explanation and clarification, as well asrisks for both current and future retirees, as well as for businesses, which must be addressed in a timely manner during the drafting stage to prevent negative developments in theviability of the Fund.
The meeting took place in a constructive atmosphere, with a shared understanding of the need to maintain an open and substantive dialogue.
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In a statement, DISY noted that as part of the ongoing series of meetings on pension system reform, a delegation from the Democratic Rally, led by party President Anita Dimitriou, met today with the leadership of the Cyprus Chamber of Commerce and Industry (KEBE).
Ms. Dimitriou emphasized the importance of the reform, stressing the need for the necessary groundwork and well-documented analysis to be carried out first in order to achieve the desired result.
She reiterated that the sustainability of the Social Insurance Fund must be ensured without raising contributions or raising the retirement age beyond 65.
The DISY President noted that the bill is expected to be submitted, and that DISY will examine it with seriousness and responsibility. She also pointed out that there are provisions and ambiguities on which both the relevant Minister and the Minister of Finance will need to take a position.
For his part, KEBE President Stavros Stavrou expressed concerns and reservations about various aspects of the reform, as it has been presented to date, requesting substantive clarifications from the relevant authorities.
He advocated for a fair and well-founded reform that would ensure the Fund’s long-term sustainability without undermining entrepreneurship and competitiveness.
Finally, he noted that the Cyprus Chamber of Commerce and Industry (KEVE) has commissioned experts to prepare a relevant study, on the basis of which it will formulate and submit its final positions in writing.
