Labour and Social Insurance Minister Marinos Mousiouttas on Monday expressed his intention to submit the pension reform bill to the House of Representatives by mid‑July, following a meeting of the Labour Advisory Body held at the Ministry of Labour in Nicosia.
The Minister said that during the meeting the actuary presented to social partners the reforms concerning survivor’s pensions, disability pensions and the orphan benefit. As he noted, “there will be more favourable conditions and criteria for workers, so that, if and when needed, they can make use of them”.
At the same time, he said that clarifications were provided regarding the 12% actuarial reduction, following requests from members of the Labour Advisory Body, along with other secondary issues concerning the first pillar. Mousiouttas stressed that much had been said during the pre-election period, while there is still no final conclusion, and the exchange of views and information with social partners continues until a consensus solution is reached.
He called for caution regarding references to figures or speculation, stating that such claims “are not based on the full truth,” as those making them “do not have all the actual data.” He added that “it would be better for them to ask the competent authorities,” but even better to show patience, as, according to the timeline, the bill will be submitted to parliament by mid‑July. This means it will first be shared with social partners, allowing political parties to study and discuss it over the summer.
“We intend to discuss, inform and listen to suggestions and questions throughout the summer, so that by September all parties are as well informed as possible and the formal discussion can begin in the competent parliamentary committees,” he said.
At the same time, the Minister expressed confidence that the timetable for the first pillar can be met, despite ongoing differences with social partners over whether the first and second pillars should proceed simultaneously. “Our position and intention is to advance the first pillar so that it can be implemented and people can start to feel the difference,” he noted.
He emphasised that the main objective is to increase low pensions, enable the gradual repayment of state debts to the Social Insurance Fund, and ensure the proper functioning of a management body aligned with European standards. This would allow surpluses from the Fund to be channelled systematically, gradually rationalising the system so that the state ceases to be a major debtor over time.
Mousiouttas also referred to proposals within the reform to grant pension credits to insured persons who would be required to contribute from the age of 16. These include mothers caring for children, informal caregivers and persons with disabilities. He added that these proposals could be expanded to include additional categories of workers requiring support.
He expressed confidence that the pension reform “will be comparable to the recent tax reform introduced last February and will provide relief to a large segment of the population, including workers and current and future pensioners.” He acknowledged that current pension levels and the cost of living do not allow for a dignified standard of life, stressing that efforts will focus on raising lower pensions within the limits of the Social Insurance Fund.
He noted that while increases will also affect medium and higher pensions, the main emphasis will be on supporting low-income pensioners, alongside improved criteria and formulas for benefits that are more advantageous for workers and retirees.
The Minister added that at the next meeting of the Labour Advisory Body, scheduled for 4 June, the Ministry of Finance will present the investment policy, including methods for returning funds, the operation of the management authority, as well as formulas and interest rates.
He also mentioned that the legislation for pension reform may resemble the framework used for the Hydrocarbons Fund, noting that the Social Insurance Fund will have a separate structure.
“In the coming days, the bill will be provided to social partners so that they can begin studying it, allowing future meetings to conclude the social policy pillar relating to the Social Insurance Fund,” he said.
Despite differing opinions at times, Mousiouttas highlighted the constructive cooperation with social partners. “We may not agree on everything, but there is collaboration and we can move forward, because the ultimate benefit is shared and concerns citizens and workers in this country,” he concluded.
