Social partners respond to the proposed pension reform in Cyprus

The Cypriot government has submitted a revised pension reform bill to social partners following recent negotiations led by Minister of Labor Marinos Mousiouttas. The updated legislation incorporates several adjustments, including a reduction of the transitional period for pension increases from five to three years and an extension of the transitional phase to 15 years to prevent potential pension cuts. The reforms also address specific conditions for widowhood and disability pensions while ensuring that there will be no increase in contributions or the mandatory retirement age.

Representatives from labor unions and employers, including Christos Tombazos of the PEO trade union and Philokypros Roussounides of the Cyprus Chamber of Commerce and Industry (KEBE), have acknowledged the government's progress. While they recognize these improvements as a positive step, they maintain that several issues remain unresolved. Unions have expressed lingering concerns regarding the calculation of pension credits for study periods and the long-term sustainability of the system. Notably, the current draft excludes provisions regarding dividend payments, leaving this matter as a significant point of contention. Moving forward, stakeholders continue to evaluate the draft document as discussions persist regarding the funding mechanisms and the overall viability of the national pension system.