Labor Minister postpones submission of pension reform bill

Labor Minister Marinos Mousiouttas has decided to postpone the submission of the pension reform bill to the Labor Advisory Board. The decision follows objections from trade unions and employers regarding the hasty timeline and lack of clarity on key issues. Specifically, stakeholders expressed concerns over the minimum pension amount, the reduction of the 12% penalty, and the governance of the Social Insurance Fund's investment committee. The government aims for the reform to take effect on January 1, 2027. While changes to the first pillar of the pension system will proceed immediately, the implementation of the second pillar is deferred by three to four years. Mousiouttas emphasized that the consultation period will continue to reach a consensus, though he initially planned to bring the bill to the Cabinet on July 1. No new date for the submission has been set, but the minister confirmed he would continue discussions with political parties to facilitate the reform.