Technical committee discusses pension and provident fund reforms

On Tuesday, October 20, 2026, the technical committee for the second pillar of pension reform held a meeting to discuss the future of provident and pension funds in Cyprus. Commissioner of Provident and Pension Funds, Nikos Koullapis, addressed social partners in the presence of ILO actuary Kostas Stavrakis. The total assets of registered provident and pension funds currently amount to approximately €4.9 billion.

Key discussions focused on the current lending framework, which allows employees to borrow up to 40% of their fund balance under specific conditions. While total loans currently represent about 4% of the combined assets, this figure rises to 10%-12% when pension funds—which prohibit such loans—are excluded from the calculation. Additionally, the committee explored structural reforms, including a potential automatic enrollment system (auto-enrolment), the establishment of an independent supervisory authority, and the management of existing funds.

Social partners are expected to submit their positions on these matters in the coming days. The technical committee is scheduled to reconvene on Tuesday, October 27, to continue deliberations on the reform implementation.