Important decisions are expected as the pension reform process nears completion, Labour and Social Insurance Minister Marinos Moushouttas said on Sunday, ahead of Monday’s meeting of the Labour Advisory Board. Speaking to journalists in Latsia, on the sidelines of the national memorial service for those killed during the Turkish invasion and a prayer service for the missing persons of the Palaikythro community, Moushouttas said he expected dialogue to continue. The precondition, he said, is for the Law Office of the Republic to complete its legal vetting of the bill within days, so that it can be submitted to the Cabinet and immediately afterwards to the House of Representatives. Dialogue could continue even shortly before the bill is put to a vote, he added, with channels remaining open for discussion with the social partners and then with the parties to find the most suitable solutions.
Higher pensions and new credits
The minister stressed that the sustainability of the Social Insurance Fund and of public finances remains an unchanging priority. With the reform, he said, pensions and allowances for low-income pensioners will rise for the first time in 50 years, so that they can enjoy a better life than they do today, while a reduction to 12% is also envisaged. Credits will also be provided to groups who for various reasons cannot work or are forced to interrupt their careers, including mothers caring for their children, people with disabilities, informal carers, students returning from their studies and school leavers looking for work. Moushouttas also pointed to smaller changes that he said had gone unaddressed for years. Among them, it will be made easier for mothers to obtain maternity allowance, since according to statistics 15% currently do not receive it. The aim, he added, is for everyone to receive their pension when they should and to retain their entitlement even in the event of a delay, something the current legislation does not allow.
The second pillar and a January deadline
Dialogue on the second pillar and provident funds is intensifying, the minister said, with discussion in the technical committee expected to conclude on Tuesday and talks at the Labour Advisory Board due to begin on Thursday. All sides are expected to submit their views by Monday, after which the Labour Ministry will assess the data and ask the social partners for what he jokingly called a “mediating” proposal, to see whether there is common ground. He described progress in this area as necessary, since provident funds serve as a monthly supplement to pensions. Moushouttas said he expected the bill to reach parliament within days. “The fixed target remains 1 January 2027,” he said, meaning the reform should be passed and implemented within two months. Acknowledging questions over whether the process can be completed in time, he said that social partners and parties alike share the goal of making the reform work, despite differing views, and that 50 years is a long time to have waited. The differences between the sides, he concluded, are small compared with the shared aim of giving citizens, workers and pensioners a better quality of life, with higher pensions and related benefits earned through a lifetime of hard work.
Source: CNA
