Nicosia, Cyprus. Cyprus’ pension reform bill is expected to enter its final drafting stage next week after Labour Minister Marinos Mousiouttas meets Finance Minister Makis Keravnos to resolve remaining financial issues.
The government aims to complete the draft by the end of next week and submit it to parliament after MPs return from their summer recess in September.
Consultation process
Mousiouttas said the final framework would be determined following discussions with the finance ministry, after which the proposals would be presented to President Nikos Christodoulides.
Once finalised, the bill will be circulated to trade unions and employers’ organisations for initial consultation before being opened to public consultation.
The labour minister will also meet parliamentary parties, accompanied by the government’s actuary, to explain the proposals before debate begins in the House.
Planned changes
The first phase of the reforms is due to take effect on January 1 next year and initially focuses on the first pillar of the pension system, which covers the social insurance fund.
Mousiouttas has previously said pensioners should begin receiving increased payments from February 1 next year. The package is intended to raise pensions and address existing distortions.
He reiterated that the government does not plan to increase the statutory retirement age or social insurance contributions as part of the reforms.
“Everyone should take into account that the planning we have done is the maximum possible utilisation of the fund’s resources,” he said.