Cyprus Labour and Social Insurance Minister Marinos Mousiouttas has reaffirmed the government’s commitment to implementing pension reform by 1 January 2027, with the relevant legislation expected to reach Parliament within the coming days.
“As we approach the final stages, the decisions being made become increasingly important,” Mousiouttas said on Sunday, ahead of Monday’s meeting of the Labour Advisory Body.
Speaking to journalists in Latsia, on the sidelines of a memorial service for victims of the Turkish invasion and a prayer service for missing persons from the Palaikythro community, the minister expressed confidence that consultations would continue.
He explained that once the Legal Service completes its legislative review, the bill will be submitted to the Council of Ministers before being forwarded to Parliament.
Dialogue to continue until the final stages
Mousiouttas stressed that discussions with social partners and political parties could continue until shortly before the legislation is approved.
“We are keeping communication channels open to listen, discuss and reflect with our partners and subsequently with political parties, in order to identify the most appropriate solutions,” he said.
However, he emphasised that the sustainability of the Social Insurance Fund and public finances remains the government’s overriding priority.
Higher pensions and additional support
According to the minister, the reform represents the first major overhaul of the pension system in approximately 50 years.
The proposed changes aim to increase pensions and benefits for low-income pensioners, improving their standard of living.
Mousiouttas also referred to a reduction to 12%, although the specific provision was not clarified in his remarks.
The reform will additionally introduce pension credits for groups who are unable to work continuously due to personal or family circumstances.
These include mothers caring for children, people with disabilities, informal carers, students returning from their studies and school leavers seeking employment.
The minister also highlighted changes intended to make maternity benefits more accessible.
He noted that approximately 15% of mothers currently do not receive maternity benefits, according to available statistics.
Further provisions aim to ensure that individuals receive their pensions when entitled, even if they submit their applications late, something the current legislation does not permit.
Discussions on provident funds intensify
The minister also addressed the second pillar of the pension system, which concerns provident funds.
Technical discussions are expected to conclude on Tuesday, while consultations at the Labour Advisory Body level will begin on Thursday.
All parties are expected to submit their positions by Monday.
The Labour Ministry will then assess the proposals and seek a compromise that could allow the reforms to progress.
Mousiouttas emphasised the importance of provident funds, describing them as an essential source of supplementary monthly retirement income.
Government maintains January 2027 deadline
The minister reiterated that the government expects to submit the pension reform legislation to Parliament within days.
“Our unwavering objective remains for the pension reform to be approved and implemented on 1 January 2027,” he said.
Acknowledging concerns over whether the ambitious timetable can be achieved, Mousiouttas insisted that social partners and political parties share a common goal despite their differences.
“Fifty years have passed. That is a long time,” he said, stressing the need to modernise the pension system.
He concluded that disagreements should not overshadow the broader objective of improving the quality of life of workers and pensioners.
The reform, he said, should ensure higher pensions and related benefits that people have earned through years of hard work.
Source: Cyprus News Agency (CNA)
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