The government plans to submit the pension reform bill to Parliament by mid-July, according to Marinos Mousiouttas, following a meeting of the Labour Advisory Board in Nicosia.
The Minister of Labour and Social Insurance said the draft legislation will be presented to social partners in advance, allowing discussions to continue over the summer before formal parliamentary debate begins in September.
Changes to pensions and benefits
Mousiouttas said the actuarial analysis presented at the meeting covered reforms to widow’s pensions, disability pensions and orphan benefits, which he said will include more favourable conditions and eligibility criteria for workers.
He also referred to clarifications regarding the 12% actuarial reduction and other technical issues relating to the first pillar of the pension system.
Focus on low pensions and system sustainability
The government’s priority, according to the minister, is the increase of low pensions, alongside measures to improve the sustainability of the Social Insurance Fund.
He said reforms aim to ensure better management of funds, reduce state debt obligations to the system and gradually improve financial stability through structured governance.
Consultation with social partners continues
The minister acknowledged that discussions are ongoing with social partners and that no final agreement has yet been reached.
He called for restraint in public speculation, stressing that incomplete information could lead to misleading interpretations of the reform process.
First pillar reform to move ahead first
Mousiouttas reiterated the government’s intention to proceed with the first pillar of the pension reform separately, despite differing views on whether both pillars should advance simultaneously.
He said the aim is to implement improvements as quickly as possible so citizens can feel tangible benefits.
Broader support measures under review
The reform package also includes proposals for pension credits for individuals insured from age 16, as well as support for mothers, informal carers and persons with disabilities.
The Minister said further categories may be added during consultation.
He added that the reform will prioritise low-income pensioners, while also improving benefits for middle and higher pensions.
Next steps in Parliament process
The draft legislation will be shared with stakeholders in the coming days, while the Ministry of Finance will present investment policies and fund management structures at the next Labour Advisory Board meeting on 4 June.
Officials are also considering a model similar to the Hydrocarbons Fund framework for the Social Insurance Fund structure.
The bill is expected to be formally introduced to Parliament before mid-July, with discussions continuing throughout the summer.
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