Disy and Keve seek clarity on pension reform plan

Nicosia, Cyprus. Main opposition party Disy and the Cyprus Chamber of Commerce and Industry (Keve) on Tuesday called on the government to clarify ambiguities in its pension reform plan. A left-leaning trade union also warned that the state is preparing to make further concessions to employers and businesses.

Meeting on pension reform

A Disy delegation led by party leader Annita Demetriou held talks with Keve officials on pension reform.

The discussions form part of positioning by interest groups before the pension reform bill is expected to be tabled in parliament later this month.

Disy concerns

Demetriou said Disy’s two priorities were ensuring the long-term viability of the Social Insurance Fund (SIF) without simultaneously raising contributions or the retirement age.

She said the government bill contained several “vague points”, including how higher pensions, a central element of the government plan, would be financed.

Keve position

Keve chairman Stavros Stavrou said the chamber supported a “substantive and fair reform”, provided it was properly documented and ensured the SIF remained viable “for many years to come”.

He stressed that the changes should not come at the expense of entrepreneurship.

Keve said the proposed reform represented a “profound change in the architecture of the pension system”, involving redistribution between basic and supplementary pensions, new categories of contributions and credits, and significant fiscal implications.

The chamber called for detailed documentation on the relationship between contributions and pension benefits, as well as a stable and predictable cost for businesses and insured persons.