Nicosia, Cyprus. The government has postponed the presentation of its pension reform bill, with Labour Minister Marinos Mousiouttas saying more time will be given for consultations to secure broader consensus before the legislation is finalised.
The bill will not be presented to cabinet this week as originally planned, after trade unions and employers’ organisations requested that discussions continue without strict deadlines.
Consultations extended
Speaking to newspaper Politis on Monday, Mousiouttas said the delay was intended to allow more convergences and fewer disagreements after the bill is presented.
He said the postponement would be brief and that the government remains committed to advancing the reform package as soon as possible.
Mousiouttas said this would happen in a very short period so that the social partners could have all the data before them and take a position on the whole package.
Further talks on pension system
He added that discussions on the second pillar of the pension system would continue in the coming weeks, while the timing of the bill’s submission to cabinet would depend on the progress of consultations.
The postponement comes as the government seeks to build support for what it described as one of the most significant overhauls of the pension system since 1980.
Scope of the reform package
The reform package is expected to address support for low-income pensioners, the management and investment of social insurance fund reserves, and the reduction of penalties applied to people who retire before the age of 65.
At present, people who retire before 65 receive 12 per cent less than they would if they retired at that age.
Fiscal sustainability concerns
Mousiouttas has repeatedly said that any reform must balance improved pension outcomes with the sustainability of the social insurance fund and the preservation of fiscal stability.
Earlier this month, he ruled out proposals to raise minimum pensions from €450 to more than €1,000 per month, as suggested by House President Annita Demetriou and Direct Democracy Cyprus leader Fidias Panayiotou, saying such increases would place excessive strain on public finances.