Cyprus prepares for pension reform bill submission in September

Cypriot Minister of Labor, Marinos Mousiouttas, announced that the government plans to submit a new pension reform bill to Parliament in September. Discussions with social partners and political parties, including DEPA, EDEK, and the Ecologists' Movement, have been ongoing for two years. The minister clarified that while the final legislative text is not yet available, it is expected to be provided to social partners and parties by the end of July. The reform aims to address systemic flaws accumulated over the past 46 years, considering current demographic shifts where the pensioner population is growing relative to new entrants. Regarding Provident Funds, the minister noted that full implementation of relevant aspects will require two to four years based on European Commission guidelines. Mousiouttas dismissed claims regarding specific pension increases, such as the 1088 figure, stating the fund cannot sustain such levels. He assured that no current pensioner would see their benefits reduced following the reform. The reform also reaffirms that individuals are entitled to work and contribute to social insurance until the age of 65.