Nicosia, Cyprus. The government’s final proposal for pension reform is expected to be decided by August 5, following a meeting between Labour Minister Marinos Mousiouttas and Finance Minister Makis Keravnos. The legislation is scheduled to take effect on January 1, 2027.
Consultation process
Mousiouttas said the draft bill would be discussed with President Nikos Christodoulides before being released for public consultation.
The government aims to submit the legislation to parliament when it reconvenes in late September. Before then, the draft will be presented to trade unions, employers’ organisations and other social partners, with consultations later extended to political parties.
“The bill will be given to the social partners and put out for public consultation,” Mousiouttas said.
He said the government’s actuary and technical team would take part in discussions to explain the proposals and consider suggestions.
Social dialogue
Formal dialogue will take place through the Labour Advisory Board, with the aim of narrowing differences between unions and employers before the legislation reaches parliament.
Mousiouttas said he was confident the government could secure broad consensus despite disagreements over some parts of the reforms.
Proposed measures
The proposed changes include measures intended to improve pensions for groups facing greater barriers to full-time employment, including parents who leave work to care for children, people with disabilities, informal carers and graduates entering the labour market.
The state would provide subsidised insurance credits to these groups, allowing them to build additional pension entitlements and increase their retirement income.
Mousiouttas also confirmed that discussions are continuing on the 12 per cent actuarial reduction applied to pensions for people who choose to retire at the age of 63.
