Concerns arise over pension reform bill in Cyprus

As the deadline for presenting the pension reform bill to social partners approaches, internal government discussions have reignited controversy. Reports suggest that a proposal to reduce certain future high-end pensions to fund increases in lower pensions, previously rejected by the President and the Minister of Labor, remains under active consideration. This adjustment would primarily target the proportional part of pensions for private-sector employees, excluding current retirees and the basic pension component.

Social partners have expressed strong opposition to this measure and criticized the government's procedural delays. Andreas Matsas, General Secretary of the SEK trade union, stated that the original goal of submitting the bill to Parliament by September 20 is now considered unfeasible. He noted that social partners have not yet received the draft legislation, making a substantive discussion at the upcoming Labor Advisory Body meeting on August 19 impossible.

While two meetings of the Labor Advisory Body are scheduled for August 19 and August 28, the lack of documentation suggests these will remain largely informational. Comprehensive feedback from the social partners is not expected until at least the end of August, further complicating the government's reform timeline.