Technical committee discusses provident fund reform in Cyprus

On Tuesday morning, the technical committee for the second pillar of tax reform held a weekly session in Cyprus to discuss issues related to provident and pension funds. The meeting was attended by the Commissioner for Provident and Pension Funds, Nikos Koullapis, and ILO Actuary Kostas Stavrakis. The session focused on current regulations and procedures regarding provident fund management and employee access to capital.

During the briefing, it was noted that employees are currently permitted to take out loans amounting to 40% of their accumulated provident fund balance, provided they meet specific criteria and submit the required documentation. Officials reported that existing employee loans account for approximately 4% of the total assets held within the provident and pension funds.

Social partners engaged in an exchange of views during the meeting and are expected to submit their formal positions on the discussed topics in the coming days. The next session of the technical committee is scheduled for Tuesday, October 27, to continue the review process as part of the broader ongoing tax reform efforts.