Government pension reform discussed with Oev board

Nicosia, Cyprus. Labour Minister Marinos Mousiouttas and International Labour Organisation actuary Costas Stavrakis discussed the government’s proposed pension reform with the board of the Employers and Industrialists Federation (Oev) on Thursday.

The government plans to submit reform bills to parliament by September 30 and implement the changes from January 1, 2027.

Meeting with Oev

Mousiouttas and Stavrakis attended a regular meeting of the Oev board at the federation’s offices, briefing members on the pension reform being advanced by the government and clarifying individual aspects of the proposals.

Oev president George Pantelides said adequate pensions and the system’s long-term sustainability were priorities for the business community.

While acknowledging positive elements in the proposed reform, Pantelides said sufficient time was needed for a meaningful assessment of the measures and their future impact.

He said that if a future actuarial assessment identified a sustainability problem, all available options should be considered, including a gradual increase in the retirement age.

Pantelides also raised the need for clarification on how the proposed improvements would be financed.

Cost and timetable

Separately on Thursday, Mousiouttas said the fiscal cost of the overhaul would be “considerably more” than €50 million a year, without providing a specific figure.

He said pensioners would begin seeing the difference from February 2027 if the changes take effect on January 1 that year.

The labour advisory board, which was meeting twice a week to examine the proposals, was due to continue discussions until October 10.

Expected pension increases

Mousiouttas said the reform would increase pensions for around 123,000 retirees.

More than 50,000 retirees are expected to receive increases of over €100 a month, while more than 8,000 are expected to receive increases of €200 over five years.