Concerns raised over proposed pension reform in Cyprus

On August 31, 2026, Annita Demetriou, President of the Democratic Rally (DISY), met with Andreas Matsas, General Secretary of the SEK trade union, to discuss the government's upcoming pension system reform. The two-hour meeting centered on the potential impact of the proposed legislation on current and future pensioners. Both parties emphasized the need for a sustainable system that ensures adequate pension benefits for dignified living.

Andreas Matsas outlined three critical risks associated with the current reform draft, particularly regarding the Social Insurance Fund (TKAs). He warned that the 2032 actuarial study could lead to reduced benefits, the potential for increased contribution rates for retirees, and the possibility of raising the retirement age to cover funding gaps. In response, Annita Demetriou argued that the reform should avoid tax increases or adjustments to retirement ages, urging the Ministry of Finance to present its final legislative proposals for parliamentary review.

Moving forward, DISY maintains that any comprehensive reform must be preceded by an extensive dialogue with social partners and include improved management of the Social Insurance Fund’s investment portfolio. The political party is awaiting official government drafts to formulate its final stance before the legislative debate in the House of Representatives.