President Nikos Christodoulides has presented what he described as the country’s biggest and most substantial pension reform since 1980, placing higher pensions, support for low-income pensioners and the long-term sustainability of the Social Insurance Fund at the centre of the proposal.
The pension reform was presented to social partners on Wednesday, with the President saying it aims to deliver greater fairness, adequacy and security for all generations.
Focus on pensioners and future generations
In a video statement, Christodoulides said the reform is based on two key principles: providing more dignified pensions today while ensuring a sustainable Social Insurance Fund for the future.
He stressed that the greatest support would go to low-income pensioners, while the measures would also aim to increase disposable household income.
“This reform is for you,” the President said, addressing pensioners, workers and young people.
He said the changes would support pensioners seeking a better quality of life, workers planning for their future and parents who have interrupted their careers to raise children.
The reform would also address the needs of people with disabilities who have not had equal opportunities to participate in the social insurance system, as well as young people preparing to enter the labour market.
Part of wider reform programme
Christodoulides described the pension reform as another major chapter in his government’s broader programme of reforms.
He referred to the tax reform, changes to benefits for people with disabilities, the permanent agreement on the Cost-of-Living Allowance (COLA), increases to the minimum wage and policies supporting families and employment.
The President said the government would continue working to increase disposable income for households, businesses, young professionals and pensioners.
He linked the approach to what he described as the government’s framework of social liberalism, combining economic competitiveness with a strong welfare state, fiscal responsibility with social justice, and individual effort with solidarity.
Focus on sustainability
A key objective of the pension reform is to ensure the Social Insurance Fund remains sustainable for future generations.
Christodoulides said the government was approaching the changes with “seriousness, responsibility and social sensitivity”, stressing that progress should ultimately be measured by improvements in citizens’ everyday lives.
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