Cyprus pension reform enters final legislative stage

The Cypriot government has distributed a revised pension reform bill to social partners, marking a transition into the final phase of legislative preparation. Labour Minister Marinos Mousiouttas confirmed that the bill includes improvements such as accelerating the implementation of pension increases over three years rather than five, and extending the transition period to 15 years to prevent benefit cuts. The government aims to secure Cabinet approval following a legal review by the Law Office, which is expected to be completed by Monday, before submitting the proposal to the House of Representatives.

While trade unions like PEO and employers' organizations acknowledge progress, concerns remain regarding the long-term sustainability of the system and specific technical issues. A significant point of contention remains the 12% actuarial reduction, which continues to spark debate between the Ministry of Labour and involved stakeholders. Additionally, discussions are progressing within a technical committee regarding the second pillar of the pension system, specifically focusing on provident funds. Minister Mousiouttas noted that as the reform enters its final stretch, the remaining unresolved issues are the most complex to finalize before the legislative process concludes.