Demetriou calls for sustainable pension reform without higher contributions

Nicosia, Cyprus. Disy president Annita Demetriou said on Thursday that the government’s pension reform must provide sustainable and adequate pensions without increasing contributions or the retirement age.

She made the remarks after meeting Labour Minister Marinos Mousiouttas as part of government consultations with parliamentary parties before the pension reform bill is submitted to the House.

Consultations to continue

Demetriou said Disy would “contribute constructively once again” after being briefed on the main principles of the proposed reform.

Mousiouttas said the dialogue with political parties would continue before the legislation is brought forward. He said the government had completed all aspects of the project, resolved questions, considered suggestions and decided to continue consultations.

The government remained open to concerns and proposals from political parties and social partners, he said.

Reform objectives and timetable

Mousiouttas said the reform was intended to help current pensioners, workers and future retirees live better and more dignified lives.

He said it aimed to correct distortions in the pension system while taking into account demographic and financial conditions over the next 40 years.

The government hoped parliamentary discussion could begin as soon as possible, with implementation targeted for January next year.

Early retirement changes

The reform includes a proposal to reduce the early retirement penalty from 12 per cent to 4.5 per cent, while limiting the reduction on the basic pension to 7.5 per cent.

Mousiouttas said the measures would raise pensions for affected retirees by an average of around 6 per cent.