Government presents pension reform plan to unions and stakeholders

Nicosia, Cyprus. The government on Wednesday presented its plans to reform the pension system to trade unions and other stakeholders, with President Nikos Christodoulides describing them as the most substantial reform of the system since 1980.

He said the reform aims to provide greater justice, adequacy and security for all generations while ensuring more dignified pensions and a sustainable social insurance fund.

Support for pensioners and workers

Christodoulides said the reform would provide the greatest support to low-income pensioners and strengthen households’ disposable income.

He said the measures were intended to benefit pensioners seeking a better quality of life, workers seeking to secure their future, mothers who interrupted their careers to raise children, people with disabilities who did not have equal opportunities to make social insurance contributions, and young people studying or preparing to enter the labour market.

Part of wider reform programme

The President said pension reform was another chapter in the government’s broader reform programme.

He said it follows tax reform, reforms concerning benefits for people with disabilities, the permanent agreement on the cost-of-living allowance, minimum wage increases, a new policy framework for people with disabilities, and policies supporting family and work.

Christodoulides said the government would continue efforts to strengthen disposable income for households, businesses, young professionals and pensioners, while combining fiscal responsibility with social justice.

He added that the government was encouraging individual effort and solidarity and offering equal opportunities to all.