The Minister said earlier plans to submit pension reform bills by the end of the year have shifted. The new target is June 2026, due to social partners requesting additional clarifications, while no partner had submitted formal feedback.
The bill will address the low-pension allowance, investment policy for the Social Insurance Fund, pensions, benefits, and a 12% penalty. Mousiouttas expects public consultation will follow once partner discussions conclude.
So far, the Social Partners’ Advisory Council has held at least 12 sessions with technical experts, including actuaries, explaining the provisions of the first and zero pillars. During the most recent session, partners requested further clarifications. Mousiouttas confirmed a final in-depth briefing will take place at the next session in early February.
“We invited both technical committee members and social partners to hear the analysis again and provide suggestions so that subsequent sessions can advance the legislation,” Mousiouttas said.
The first pillar analysis covers old-age, disability, widowhood, and orphanhood benefits. Social partners will present improvement proposals or concerns before the bill proceeds to public consultation, Cabinet approval, and finally, Parliament submission by June 2026.
Social insurance fund and investment policy
The bill will also outline how the Social Insurance Fund reserves are managed, including investment methods and repayment procedures. The investment policy, currently under discussion with the Finance Minister, will be finalised by early February and shared with social partners.
“By February, we will communicate our position on the investment policy to social partners, covering the first pillar and zero pillar, which includes the low-pension allowance,” the Minister added.
Mousiouttas confirmed that approximately €11–12 billion currently deposited in state accounts are Social Insurance Fund loans to the government. The reform will address this issue, as well as the low-pension allowance, ensuring a unified benefits system with no overlapping sources.
Currently, 95% of fund contributions are deposited in the state fund at 2.16% interest, while 5% are placed in banks with Finance Minister approval. The new policy aims to deliver safer, higher returns for the fund and employees.
Minimum wage and paid internship reforms
Mousiouttas addressed pending legislation on paid internships. He said discussions with student and youth organisations continue to ensure a proposal reaches Parliament or the new legislature promptly.
The Ministry also plans measures to support parents whose children require long-term medical care abroad or domestically. These parents often must leave work, causing income loss.
Regarding the minimum wage, technical committee discussions resumed after a Danish European Court ruling required revisions. Apostolou explained that the new legislation will establish procedures for determining minimum wages via law, collective agreements, or other mechanisms, ensuring member states meet the 80% coverage target over time. Strategic action plans will be reviewed every five years.
Parliamentary feedback
Committee President Andreas Kafkalias said the government needs more time to submit pension reform bills while engaging social partners. He noted unresolved issues include increased minimum pensions, the 12% penalty, and widowhood pension disparities.
On paid internships, Kafkalias criticised the government’s reversal on national legislation, citing delays due to European directives. He also highlighted gaps in state support for parents of seriously ill children, emphasising the need for income protection during prolonged absences from work.
Deputy George Penintaex welcomed constructive dialogue on all issues, particularly support for parents accompanying children abroad for treatment, noting the severe financial and social challenges involved.
Also read: Basic pensions increase announced – Rise 3.38% from January
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