Government rules out pension cuts in planned reform

Nicosia, Cyprus. Labour Minister Marinos Mousiouttas said planned pension reforms will not reduce any pensions, with all pensioners set to receive increases. The government aims to submit legislation on the first reform pillar to parliament in September.

Higher pension proposal abandoned

Mousiouttas dismissed reports that some higher pensions could be reduced under the reform.

He said an option considered at an early stage involved cuts of around 5 per cent to the highest pensions paid by the Social Insurance Fund. The proposal was abandoned after opposition from social partners.

“We immediately ruled out this possibility,” Mousiouttas said, adding that the options now being considered contain “no element of reduction”.

“Everyone will have some increase. Some smaller and some larger,” he said.

Draft bill timetable

The minister said the draft bill was being finalised following consultations with Finance Minister Makis Keravnos last Wednesday and President Nikos Christodoulides on Friday.

He said he hoped the bill would be ready by Friday. If not, it would “certainly” be handed over before the labour advisory board meeting next Wednesday and released for public consultation at the same time.

Parliament submission planned

The government intends to submit the first pillar of the reform to parliament during its first plenary session after the summer recess, expected on September 20.

The first pillar concerns the Social Insurance Fund, including pensions, the minimum pension and the 12 per cent penalty for early retirement.