During yesterday’s meeting of the Labour Advisory Body, the actuary outlined to social partners the reforms concerning survivor’s pensions, disability pensions and the orphan benefit. As Mousiouttas said, “there will be more favourable conditions and criteria for workers so that, if and when needed, they can make use of them.”
PEO general secretary Sotiroula Charalambous told Politis that the union is raising the issue of chronic patients, calling for specific provisions.
According to Politis sources, the Ministry of Labour is expected in the coming days to send social partners a comparative table outlining what applies today and what will apply after the reform, with specific practical examples. The aim, according to the same information, is to reclassify disability pension beneficiaries so that the system becomes fairer overall.
Within the framework of the reform, the minister noted, there are proposals to grant credits to insured persons who will be required to contribute from the age of 16, including mothers caring for children, informal caregivers and people with disabilities. These proposals “may later be expanded to include additional categories of workers requiring further regulation,” he said.
12% reduction
At the same time, the minister said that questions regarding the 12% actuarial reduction are being clarified. However, the issue has not yet been fully resolved.
Charalambous stressed that there must be discussion on a graduated application of the 12% reduction, depending on years of work and contributions to the social insurance system.
Doubts over timeline
Despite Mousiouttas’s optimism about submitting the bill by mid‑July, unions and employers do not share the same view.
“It is unrealistic to submit the bills in July, as there are clear outstanding issues and a unified design of the pension system is required,” SEK general secretary Andreas Matsas told Politis.
“With the composition of the new parliament and the results showing that unsubstantiated approaches did not pass,” he added, “we hope we can approach the pension system as a whole.”
Both OEB assistant director general Lena Panayiotou and KEVE deputy secretary general Aemilios Michail outlined to Politis their position in favour of a comprehensive reform covering both the first and second pillars. Panayiotou noted that “we are recording all data to form a complete picture”, stressing that “our timelines involve a thorough and in-depth discussion, as this concerns the largest social reform.”
Relief for the population
The minister said the reform “will be comparable in scope to the tax reform implemented last February and will provide relief to a large part of the population, including workers, former workers and current and future pensioners.”
“Alongside the formulas we use, medium and higher pensions will also increase, but the main emphasis will be on low pensions, beyond the criteria that will be used to calculate various benefits, which will be more favourable for workers and pensioners,” he said.
Finance Ministry presentation
Mousiouttas added that at the next meeting of the Labour Advisory Body on 4 June, the Ministry of Finance will present the investment policy, including methods for returning funds, the operation of the management authority, and the formulas and interest rates.
He said there are also thoughts that the pension reform legislation may resemble the framework approved by parliament for the Hydrocarbons Fund, while the Social Insurance Fund will remain a separate entity.
“In the coming days, the bill will be given to social partners to begin their review, so that in future meetings the social policy pillar relating to the Social Insurance Fund can be finalised,” he said.
Despite differing views, Mousiouttas highlighted the good cooperation with social partners. “We may not agree on everything, but there is synergy and we can move forward, because the benefit is shared and concerns citizens and workers in this country,” he concluded.
