Pension reform bill may be amended after reaching parliament, minister says

Nicosia, Cyprus. Changes to the bill covering the first pillar of pension reform may be made after it is tabled in parliament, Labour Minister Marinos Mousiouttas said on Monday. The government aims to introduce the reforms on January 1, 2027.

Bill awaiting legal vetting

Speaking after a meeting of the labour advisory board, which includes trade unions and employers’ organisations, Mousiouttas said the bill would be presented to the cabinet on Wednesday if the attorney-general’s office completes its legal vetting. Otherwise, it would go to the cabinet next week.

Government bills are submitted to the cabinet by the relevant minister before being tabled in parliament if approved.

Scope of the reforms

The first pillar covers changes to the Social Insurance Fund’s mechanics and state pensions. The second concerns provident funds, the fund’s cash reserves and its investment policy. The so-called pillar zero addresses pensions for low-income earners.

Mousiouttas said the government wants people to see the effect of the first-pillar changes in their accounts when the first transfer is made on February 1, 2027. He also said he had anticipated difficulties in the continuing talks with stakeholders.