Unions warn pension reform could leave retirees below poverty line
Trade unions said proposed pension changes could leave some retirees with incomes below Cyprus’ current poverty threshold.
Nicosia, Cyprus. Trade unions have warned that the government’s planned pension reform could leave some pensioners below the poverty line, following a four-and-a-half-hour meeting involving the government, employers’ organisations, unions and other stakeholders.
Poverty threshold concerns
Peo leader Sotiroula Charalambous said Cyprus’ current poverty line stands at €1,018 per month.
Under the government’s plans, pensioners would receive a minimum total income of €900 per month when their pension is combined with other benefits and allowances to which they are entitled, she said.
Charalambous noted that this would increase the current minimum of €794 per month. However, she said that “even with the reform, there will continue to be pensioners whose total income will be below the poverty line”.
Early retirement adjustment
Charalambous said Peo was dissatisfied with the government’s intention to reduce the downward adjustment of pension rates for early retirees from 12 per cent to 7.5 per cent.
“We are ready to discuss the issue constructively, with the main issue being that any relief must include an entire and not a partial reduction,” she said.
She also said the union expected the finance ministry to provide figures on the reform’s cost. State actuary Costas Stavrakis had earlier said the reform would cost taxpayers €50 million per year during its first five years of implementation.
Call for adequate pensions
Sek leader Andreas Matsas said his union would not accept a downward differentiation of pension benefits or the creation of risks for future pensioners.
Referring to early retirement provisions, he said the union would seek to ensure that the issue of the 12-per-cent adjustment is addressed adequately.
Asked about the unions’ red lines in future discussions, Matsas said the objective was to ensure pensions were adequate.
“We are undertaking a reform process, so it cannot be fragmented. It should have a beneficial result for all pensioners,” he said.
This news item was generated automatically by Cyprus Inform from publicly available materials. Report an error →