SEK says pension reform bill cannot reach parliament by September

Nicosia, Cyprus. Trade union SEK said on Tuesday that pension reform legislation is unlikely to be tabled in parliament by September 20, citing insufficient time for consultation with unions and employers.

Consultation process

SEK head Andreas Matsas said unions had not yet received the government’s draft bill on the first pillar of pension reform.

The consultation process is under way, with two meetings of the labour advisory board scheduled for August 19 and August 28. The board includes representatives of trade unions and employers’ organisations.

Once consultations are completed, the legislation is to be submitted to parliament. The government intends to table the bill covering the first pillar by September 20.

Two pension reform pillars

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

The second pillar concerns provident funds. Separate bills have been drafted for each pillar.

Matsas said the unions had agreed at the previous labour advisory board meeting that they would have around two months to examine and discuss the government’s bills. He said this timetable was currently not feasible because the draft legislation on the first pillar had not yet been provided.