The Labour Minister has outlined the government's proposal to reduce the "penalty" applied to early pensions. Marinos Mousiouttas said the issue is at the centre of dialogue with the unions, with different scenarios and proposals being examined in an effort to reach a commonly accepted solution. He noted that the government does not consider itself "infallible" and remains open to adjustments, provided the overall cost of the reform does not increase.
Average pension rise of 6%
The government's proposal provides for pension increases averaging around 6%. The cost for existing pensioners is estimated at €24 million, while an additional cumulative cost of around €12 million is projected over the following 12.5 years.
The overall cost of the measures is expected to be further clarified next week, when the Finance Minister presents the costing of the reform and its individual benefits.
A fresh actuarial study in five years
The plan also provides for a new actuarial study to be carried out five years after the reform takes effect. Should that study find that additional resources are needed to sustain the pension increases, a discussion on a possible rise in contributions cannot be ruled out.
The pension reform remains scheduled to be phased in gradually from 1 January 2027, with the pension increases implemented over a five-year period.
