Cyprus prepares pension reform bill for parliamentary review

Minister of Labour and Social Insurance Marinos Mousiouttas announced that a pension reform bill regarding the first pillar, the Social Insurance Fund, is expected to be submitted to the House of Representatives around September 20. The reform aims to improve pension benefits starting February 1, 2027. The Minister clarified that there will be no increase in the retirement age or contribution rates. Furthermore, he noted that the second pillar, concerning provident funds, will take approximately 14 years to yield tangible differences for pensioners. Consultations with social partners and political parties are ongoing, with a draft text expected by the end of July. Minister Mousiouttas emphasized that any request for increased benefits must be offset by equivalent expenditure reductions, rejecting claims that minimum pensions could reach 1,088 euros. The reform addresses demographic shifts and aims to correct structural issues within the system that have persisted for 46 years.