Cyprus pension reform bill faces delays and opposition

The Cypriot government is progressing with a major pension reform aimed at improving benefits, transparency, and the sustainability of the Social Insurance Fund. Minister of Labour and Social Insurance Marinos Mousiouttas announced that the legislation targets 123,000 pensioners with increases ranging from 5% to 55%. Specifically, over 50,000 retirees are expected to see a monthly increase of more than €100 within five years, while 9,500 will receive over €200. The government intends for the reform to take effect on January 1, 2027.

However, the legislative process has encountered technical delays during final legal vetting by the Attorney General’s office, pushing back the expected submission to the Council of Ministers and subsequently to the House of Representatives. While the government originally targeted late September for submission, the process is now expected to reach parliament by early October. Meanwhile, trade union PEO and the political party AKEL have expressed strong reservations, citing concerns over pension adequacy, the 12% actuarial reduction penalty, and the protection of future pensioners. The government remains open to further dialogue and potential amendments even after the bill is officially tabled.