Nicosia, Cyprus. Labour Minister Marinos Mousiouttas has rejected proposals to raise minimum pensions by 125 per cent, saying any increase must remain compatible with the sustainability of the Social Insurance Fund and fiscal stability. He said the government’s full pension reform package is expected by the end of June.
Minister rejects sharp increase proposal
Speaking to CyBC radio on Friday, Mousiouttas said minimum pensions would be substantially higher than in recent decades but ruled out proposals to raise them from the current €450 per month to €1,088.
“It is not possible for a pension of €450 to increase by 125 per cent to €1,088,” he said.
Government urges delay in debate
Mousiouttas suggested that public debate on the level of the minimum pension should be suspended until the government presents its full pension reform package.
He said all aspects of the planned pension reform would be announced before the end of the month and called for patience until the full details are presented.
Fiscal limits and fund sustainability
The minister said decisions on pension increases must take into account the country’s fiscal framework and the limits within which the executive branch can operate.
He said a number of factors must be considered when determining pension levels and added that once all relevant data are presented, “many of the proposals made during the election campaign will be revised”.
“The Social Insurance Fund is not an inexhaustible source of money,” he said. “There are limitations, and both the sustainability of the fund and the safeguarding of fiscal stability must be taken into account.”
Briefings planned for parliamentary parties
Mousiouttas also said he plans to meet all parliamentary parties during the summer to brief them on the contents of the proposed legislation.
He said the legislation is expected to be submitted before parliament closes for its summer recess and that the meetings would ensure MPs are informed about the main provisions of the reform and any specific issues arising from the new legislative framework.
