Cyprus government targets pension reform implementation by January 2027

Cyprus Minister of Labour and Social Insurance Marinos Mousiouttas has reaffirmed that the government’s goal is to implement a comprehensive pension reform by January 1, 2027. The proposed bill is currently undergoing a legal review by the Attorney General's office and is expected to be submitted to the Council of Ministers within days, followed by its tabling in the House of Representatives. The primary objective of the reform is to ensure the long-term sustainability of the Social Insurance Fund (SIF) and public finances, while simultaneously increasing pensions and benefits after 50 years.

Minister Mousiouttas emphasized that discussions with social partners, including the Labour Advisory Body, and political parties will remain open even during the final parliamentary stages to ensure the most effective solutions are reached. Additionally, the government is intensifying consultations regarding the second pillar of the reform, which focuses on Provident Funds. New proposals include a shift in the investment policy for SIF surpluses, with support from the International Labour Organization (ILO). Experts are currently working to design a study for an autonomous entity that will manage these funds to provide an additional source of revenue for the system beyond standard contributions.