In Cyprus, social partners demanded a cost estimate for pension reform
In Cyprus, representatives of employers and trade unions demanded that the government provide a detailed cost estimate for the proposed pension reform. As Cyprus Mail reports, the issue was raised at a meeting of the Labour Advisory Board.
Proposed changes
Labour Minister Marinos Mousiouttas stated that all 123,000 pensioners would receive higher payments, while around 50,000 people would receive more than €100 per month. The government also proposed reducing by 4.5 percentage points the current 12-percent pension reduction for those who claim it at the age of 63.
According to the publication, the current reform is not expected to affect the level of employee and employer contributions, the retirement age, or benefit reductions. The law provides for an increase in monthly contributions in 2031 following an actuarial study, but the article does not specify when contribution rates may be changed.
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Position of social partners
The social partners asked the government to compare costs under the current system with costs after the full implementation of all increases. In their view, the previously published data were too general and did not provide a clear picture of the cost of the planned changes.
The leadership of the employers’ federation, at a meeting at the presidential palace, expressed concern that pension increases could lead to higher contributions earlier than envisaged. Employers’ and trade union representatives voiced the same concerns about the future burden on the Social Insurance Fund amid an ageing population and persistently low birth rates.
Government spokesperson Konstantinos Letymbiotis said that, after the reform is fully implemented, 51,664 pensioners are expected to receive increases of more than €100 per month. According to him, this is more than four out of ten pensioners.
