Nicosia, Cyprus. Labour Minister Marinos Mousiouttas said the government is against cutting pensions, even for the highest earners, following a meeting with government officials and trade union leaders. He said an actuarial study presented options including a two to five per cent reduction for the highest five to ten per cent of earners, but this is not in the government’s plans.
Government position on pension reductions
Mousiouttas said the government’s view is that any scenario involving reductions to acquired pension rights should be set aside. He said the government will seek ways to resolve the issue without envisaging any reduction of acquired rights for any pensioner.
Union focus on low-income pensioners
Peo leader Sotiroula Charalambous said the goal should be to increase pensions for low-income recipients so that no pensioner has an income below the poverty line. She agreed with Mousiouttas’ position on high-income pensioners, saying there cannot be redistribution among pensioners, and added that pensions could be increased by allocating more state resources.
Calls for comprehensive reform and gradual implementation
Sek leader Andreas Matsas said his union is ready to accept gradual implementation of planned reforms if necessary and documented, provided planning is comprehensive. He warned that a fragmentary approach to reform would lead to fragmentary results.
Timeframe for dialogue and legislative plans
Deok leader Stelios Christodoulou said pension reform is not an easy undertaking and that as much time as necessary should be allocated to achieve the best result, while expressing hope that dialogue will be completed soon. He said the next step is to consider the needs of pensioners in future generations.
Mousiouttas said last month the government aims to submit bills to parliament to reform the pension system by June and called on the House labour committee to find common ground and promote legislative proposals or bills aimed at helping people.
What approach do you think should be prioritised in Cyprus’ pension reform discussions?